Microsoft Corporation (NASDAQ:MSFT)‘s apparently hoodwinked Nokia Corporation (ADR) (NYSE:NOK) into backing another of its crazy Windows-fueled dreams.
Sources are telling The Verge that the Finnish handset maker is going to launch a Windows RT tablet on Sept. 26. The tech blog reported this earlier this month, but yesterday it offered up some more details on Nokia Corporation (ADR) (NYSE:NOK)’s doomed gadget.
We’re not talking about Windows Pro, the mobile operating system that at least runs PC programs. Windows RT is the scaled-back platform that Microsoft Corporation (NASDAQ:MSFT) is hoping takes off despite a lack of hardware and developer support.
There’s apparently a lack of fan support, too.
Industry watcher IDC reported earlier this month that just 200,000 of the 45 million tablets shipped during the this year’s second quarter — or 0.5% — were Windows RT devices. There’s a reason why Microsoft Corporation (NASDAQ:MSFT) slashed the price of its own Surface RT tablet by as much as 30% this summer.
Nokia Corporation (ADR) (NYSE:NOK)’s a bum magnet, but that’s no excuse for following Mr. Softy down this downward spiral.
Yes, Nokia Corporation (ADR) (NYSE:NOK)’s desperate. Revenue’s sliding, and profitability’s been spotty. Microsoft Corporation (NASDAQ:MSFT)’s paying Nokia Corporation (ADR) (NYSE:NOK) good money to support Windows Phone, but at some point this debasing has to end. The Lumia line of Windows Phone smartphones has been marginally successful, but there’s no way that this is going to work.
The scariest thing is that The Verge is hearing that the new tablet — fittingly slapped with the codename of Sirius, the Dog Star — will be priced comparably to Apple Inc. (NASDAQ:AAPL)‘s iPad.
Yes, the proposed specs are impressive, surpassing what Apple Inc. (NASDAQ:AAPL) currently has on the market in many ways. However, wasn’t pricing the Surface RT at similar price points to the iPad what ultimately did it in? The tablet war is one that’s being won on platform — not spec sheets. Didn’t Nokia learn from its sugar daddy’s mistakes? Microsoft Corporation (NASDAQ:MSFT) had to take a $900 million charge in its latest quarter because it overestimated the appeal of Surface tablets.
More importantly, even Apple Inc. (NASDAQ:AAPL) isn’t what it used to be. In the same IDC report, Apple Inc. (NASDAQ:AAPL)’s share of the tablet market has contracted from 60% to 32% over the past year. The mass market is gravitating to even cheaper Android tablets that have the developer support lacking with Windows RT.
Nice job with the Sirius codename. Nokia Corporation (ADR) (NYSE:NOK) used to be a star. Now it’s just a dog.
The article Microsoft Has to Hate Nokia originally appeared on Fool.com and is written by Rick Munarriz.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft.
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