Nokia Corporation (ADR) (NYSE:NOK) and Research in Motion Ltd. (NASDAQ:BBRY) – er, BlackBerry Ltd. – are fighting for its very smartphone lives, as the handset market for smartphones is being dominated by the duopoly of Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. Ltd., which take up the majority of the market. Specifically, the iOS and Android operating system by Google Inc. (NASDAQ:GOOG) make up about 90 percent of the overall OS marketplace in smartphones.
While there isn’t much room for third place in smartphones, Nokia Corporation (ADR) (NYSE:NOK) is certainly looking to take advantage of its relationship with Microsoft Corporation (NASDAQ:MSFT) and the Windows Phone OS to leverage a bigger share of the market place – and is apparently taking a strategic tack to directly go after Research in Motion Ltd. (NASDAQ:BBRY) and its BlackBerry OS, which has been popular in the policitcal and financial classes over the years despite its overall market share plummeting.
How important is No. 3 for both smartphone companies? “The importance of winning the business audience on a scale of 1 to 10 is easily an 11,” said Ramon Llamas, an IDC research analyst. Llamas expects that Windows Phone by Microsoft Corporation (NASDAQ:MSFT) will surpass Research in Motion Ltd. (NASDAQ:BBRY) BlackBerry as the No. 3 operating system among smartphones, with Nokia Corporation (ADR) (NYSE:NOK) being the beneficiary of most of the improvement.
Could Nokia Corporation (ADR) (NYSE:NOK) improve its standing by making an acquisition run at Research in Motion, Ltd. (NASDAQ:BBRY)?
The advantage that Nokia has isn’t just the loyalty of Windows by IT directors, but it’s also the business-friendly mobile experience with the ability to use Word, Excel and PowerPoint on the Windows phones. This can help with smooth sychronization with a company’s desktop or laptop computers in the office, which can be handy in this new BYOD (Bring Your Own Device) enterprise culture.
Nokia Corporation (ADR) (NYSE:NOK) CEO Stephen Elop was asked recently about whether the company would have interest in acquiring Research in Motion Ltd. (NASDAQ:BBRY) to strengthen its market share, he said, “When I get asked that question, my answer is ’I’m interested in their customers,’” he said at Mobile World Congress in Barcelona this week. “It’s a really perfect moment to go after that marketplace.” There is no reprot that suggests that BlackBerry is even for sale at this point.
What do you think? Is Nokia Corporation (ADR) (NYSE:NOK) taking the right approach to gain market share, and can Research in Motion Ltd. (NASDAQ:BBRY) – er, BlackBerry, Ltd. – withstand the attack with its new BB10 operating system? Do you think Nokia should consider making an offer for BlackBerry? (Nokia has an U.S. market cap of $14 billion, while BlackBerry is at about $6.5 billion.) Let us know your thoughts in the comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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