Four Reasons Why Apple Inc. (AAPL) Should Buy Nokia Corporation (ADR) (NOK)

Reason 4: Apple Maps

Horrid memories of melting cities, dislocated cities, and railroad track driving routes still haunt the memories of Apple Maps users. That distorted mess was the company’s worst blunder in years, and forced it to allow Google Maps back onto iOS platforms.

Nokia surprisingly owns some of the best mapping software in the business, after it acquired Navteq Corporation in 2007. Google, Blackberry, Microsoft, Amazon Inc. (NASDAQ:AMZN), and Samsung all depend on Navteq technology to some degree. Acquiring Navteq would be a brilliant move that mirrors Google’s acquisition of travel search engine ITA back in 2011 – it would take control of its competitors by buying (and charging for) the back door.

Nokia also paid $8 billion for Navteq. Claiming that valuable piece of technology, along with the rest of Nokia for $15 billion to $20 billion, would be a steal.

The Foolish Bottom Line

For now, Nokia’s on sale. But under Elop’s ambitious guidance, it may not be a value stock for much longer. At most it would cost Apple $30 billion to acquire Nokia and cover its outstanding debt. That’s a mere 22% of its cash hoard to invest in a future beyond the confines of iOS devices. Acquiring Nokia would expand Apple’s defensive moat, destroy Microsoft’s mobile business, and give it valuable leverage over its Android-based competitors.

That, Mr. Cook, would be money well spent.

The article Four Reasons Why Apple Should Buy Nokia originally appeared on and is written by Leo Sun.

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