Nokia Corporation (ADR) (NOK)? No Thanks

Is Nokia up for sale?

Perhaps the only way to save Nokia Corporation (ADR) (NYSE:NOK) is to be bought out by Microsoft Corporation (NASDAQ:MSFT). Such an acquisition would make sense: Nokia has seen its past glory falter under increased competition and Microsoft has been ambitious in its plans to gain ground in the global smartphone market. According to an article in The Wall Street Journal, Microsoft Corporation (NASDAQ:MSFT) already explored the possibility, but nothing came of it. In 2011 Nokia CEO (and former Microsoft executive) Stephen Elop made Windows the exclusive operating system for the Nokia Corporation (ADR) (NYSE:NOK) cell phone line.

While recent reports have shown that Microsoft Corporation (NASDAQ:MSFT) is not buying Nokia, Nokia’s Lumia accounts for 80% of Microsoft’s phone shipments. Yet even with that penetration, Microsoft Corporation (NASDAQ:MSFT) only has a 3% share of the global market. Smartphones are important to Microsoft as PC sales continue to slump and it recently took a $900 million charge on tablets. Some feel Microsoft is partly to blame for poor Nokia Corporation (ADR) (NYSE:NOK) sales.

Conclusion

Things are just not looking bright for Nokia and investors should steer clear. While some will take comfort in the cash on its balance sheet, there is one fact that clearly shows that Nokia Corporation (ADR) (NYSE:NOK) is on the decline. In the first quarter, for the first time ever, Samsung outsold Nokia in its native Finland, which is the company’s last stronghold.

The article Nokia? No Thanks originally appeared on Fool.com and is written by Jayson Derrick.

Jayson Derrick has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft Corporation (NASDAQ:MSFT). Jayson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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