Could Nokia Corporation (ADR) (NYSE:NOK) finally recover? Is there ever going to be an end to all of the negative news we hear about the company? I think that the company has a great shot at making a comeback. After all, it has Microsoft Corporation (NASDAQ:MSFT) as a partner.
Here’s reality
There’s a definitive trend in declining momentum for both the company’s low-end and smartphone segments.
Source: Nokia
The company reported a 34% year-over-year increase in the average selling price of its smartphone devices. The increase in average selling price was driven by the transition over to Windows Phone 8. Total device volume has dropped by 49%. The company’s growth will become dependent on its Microsoft partnership.
The Nokia EOS device
Source: GSMArena
These are the leaked photos of the upcoming Nokia EOS. Perhaps the features that stand out the most about the product are the Windows Phone 8 operating system and the 41-megapixel camera. The camera sort of protrudes outwards, but when you consider the fact that it is a 41-megapixel camera I think that we can all make some compromises on the form factor. The device sports a 1.2 GHz dual-core processor and a 768×1280 pixel super AMOLED 4.5-inch screen.
The device isn’t bad, but it could be substantially better. Let’s start with the naming of the product: it’s called Nokia Lumia 1020. This needs work. No one should drop a long line of numbers next to a product name. Even Microsoft was smart enough to go from Xbox 360 to Xbox One instead of jumping to the Xbox 720.
The pros and cons
Nokia Corporation (ADR) (NYSE:NOK) will most likely improve the speed of its production and development cycle to match competitors like Sony Corporation (ADR) (NYSE:SNE), HTC, and Samsung. There is just too much at stake to let anything slide at this point. If Nokia shows up late it means having a product that’s below average. A cool camera isn’t going to sell itself and while it’s really nice to have 41 megapixels, the company will need to release a phone that has top specs in all categories (Snapdragon 800, 1080p, 2GB of RAM, Windows Blue.) Going forward, the company will eventually catch up to its competitors in phone specifications.
The company’s greatest asset is its use of the Windows Phone 8 operating system. The Metro user interface makes it easier for the average user to familiarize himself or herself with the product. It will be easier for the device to sync with the Windows 8 operating system and will allow for better centralization of applications. After all, an increasing number of applications are cross-compatible between Windows Phone 8 and Microsoft’s Windows 8. Going forward, the upcoming Windows 8.1 update will further standardize compatibility between the Windows 8 OS and Windows Phone 8. That being the case, Nokia’s greatest advantage is the power of Microsoft’s product ecosystem in laptops and desktops.
