Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Don’t Count Nokia Corporation (ADR) (NOK) Out Yet

Nokia CorporationIt seems that lately Nokia Corporation (ADR) (NYSE:NOK)’s competitors have been getting all the attention. The press has been focused on BlackBerry’s 10 line of smartphones and the company’s decision to expand its BlackBerry Messenger (BBM) to iOS and Android. In terms of Apple Inc. (NASDAQ:AAPL), investors have been focused on the company’s mountain of cash and its overall valuation.

Nokia Corporation (ADR) (NYSE:NOK), meanwhile, has been quietly making some very smart moves, and I think investors need to start paying closer attention to how cheap Nokia has become.

Nokia’s history

Many investors forget that at one time Nokia Corporation (ADR) (NYSE:NOK) was the top-selling mobile phone manufacturer in the world. The company failed to adapt to changing conditions and got toppled by Apple Inc. (NASDAQ:AAPL)’s iPhone and Google Inc (NASDAQ:GOOG)‘s Android. Over the past two years, the company has made a complete shift and adopted Microsoft Corporation (NASDAQ:MSFT)‘s Windows operating system and sold those smartphones under the Lumia brand. Nokia is now locked in a battle with BlackBerry for the number-three spot in the smartphone wars.

Emerging markets

Nokia Corporation (ADR) (NYSE:NOK)’s strong suit is in emerging markets. Its phones are known for their long battery life where access to phone chargers can be intermittent. Nokia’s phones are known for being practical and quite honestly, just working as a phone is supposed to.

Nokia Corporation (ADR) (NYSE:NOK) has been operating and selling phones in China for more than 20 years. It has an agreement to sell its Lumia phones with the world’s largest carrier, China Mobile. Nokia’s sales and distribution forces in China remain strong. The one problem Nokia had to encounter was not being able to deliver all the phones China Mobile ordered. Sales in China were down in the first quarter because of this backlog, but look for this to be rectified in the coming quarters. Nokia’s Lumia 920 has great potential if Nokia Corporation (ADR) (NYSE:NOK) can get its marketing and overall China strategy right.

Nokia just launched a new mid-range line of phones under the Asha brand. These phones sell for about $99 and offer a touchscreen with Internet capabilities. The Asha phone is geared towards the market in India and Africa, where incomes are lower but the demand for smartphone features is rapidly growing. India is the world’s second-largest cellular market by sales, and Nokia has 26% of the market. For Nokia Corporation (ADR) (NYSE:NOK), India is the second-most important market after China.

Recent market share gains

The latest Q1 mobile-phone shipments showed gains for Microsoft Corporation (NASDAQ:MSFT) and Nokia with the Windows OS officially overtaking BlackBerry’s OS for the third spot. Nokia Corporation (ADR) (NYSE:NOK) represents 79% of all phones using the Windows OS. The key for Nokia and Microsoft Corporation (NASDAQ:MSFT) is being able to take market share away from Apple Inc. (NASDAQ:AAPL) and Android, which account for 92.3% of the market combined.

Nokia’s new 925

Nokia Corporation (ADR) (NYSE:NOK) just released its flagship Lumia phone the 925. This phone will be available exclusively through T-Mobile in the U.S. The new phone makes several improvements over the prior 920. The phone has a better camera and is sleek and stylish with an aluminum frame.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.