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.

Is Nokia Corporation (ADR) (NOK) Destined for Greatness?

The breakdown of mobile market share does not tilt in Nokia’s favor at present. Google (NASDAQ:GOOG)‘s Android and Apple (NASDAQ:AAPL)‘s iOS combined for over 90% of the smartphone market in the fourth quarter. Nokia, which is leaning on Microsoft (NASDAQ:MSFT)‘s Windows Phone, shipped 4.4 million Lumias, which dominated the tiny slice of Windows Phone smartphones in the market last quarter, but was still not enough to surpass the fast-fading BlackBerry.

Nokia Corporation (ADR) (NYSE:NOK) has at least one advantage over Apple (though this may not be as much of an advantage over Android phone makers): extensive experience in lower-cost devices. Forget about feature phones — Nokia can push out smartphones running Windows at a lower cost than many competitors. Apple struggles in unsubsidized phone markets because the cost of most Android headsets is so much lower than that of the iPhone. The Lumia line, with its striking design features (a hallmark of Nokia’s success in the pre-smartphone era), has the potential to capture significant mindshare in emerging markets like India and China. Nokia hasn’t abandoned feature phones, either. Starting emerging-market users off with a $20 or $80 feature phone could be a smart brand-building strategy, especially if it transitions users to more lucrative entry-level smartphones. Apple may be seen as an aspirational brand, but that status is far from assured if the company fails to move forward in terms of design and functionality. Fashion is a fickle thing, especially when that fashion is too costly for the consumer.

Nokia Corporation (ADR) (NYSE:NOK) is a big fish in the tiny Windows Phone pond right now. It can remain a big fish if the pond grows, but a dry season might suffocate it. This year will be a very important one for the company’s future, but that future remains far from clear.

The article Is Nokia Destined for Greatness? originally appeared on Fool.com.

Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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.