Nokia Siemens Networks: As of late, Nokia Corporation (ADR) (NYSE:NOK) is doing everything it can to regain its stronghold in the mobile phone market. While there is a lot of competition, not to mention the fact that the market has changed quite a bit since the company was at the top, there is no lack of effort.
For example, we recently discussed the company’s low cost phone in India.
Today, we want to take a closer look at what Nokia Corporation (ADR) (NYSE:NOK) is doing with its Lumia line of phones in new markets including China.
In a recent Reuters piece, it is noted that the company is strongly pushing its Lumia smartphones in an attempt to “shrink an overall revenue decline and reduce its first-quarter loss.”
This would be good news for CEO Stephen Elop, as it is safe to say that he is feeling the pressure of a company that is struggling to keep up with the competition.
More good news for Nokia Corporation is the expectation of a turnaround within its Nokia Siemens Networks business. Quarterly results are due to be reported on Thursday, and if everything goes as planned it could help improve the company’s bottom line while boosting shares.
At this point, there is nothing to believe that Nokia Corporation (ADR) (NYSE:NOK) can compete one on one with the likes of Apple Inc. (NASDAQ:AAPL) and Samsung. These two companies are fighting it out at the top of the smartphone industry. In the back of the pack, you will find two companies – Nokia Corporation and Research In Motion Ltd (NASDAQ:BBRY) BlackBerry – that were once at the front.
The future of Nokia Corporation (ADR) (NYSE:NOK) is unsure for a variety of reasons, including the fact that its phones rely on Microsoft Corporation (NASDAQ:MSFT)‘s Windows software. This is a risky strategy, as the company is not in control of its own fate. This is something Michael Schroder of the investment group FIM discussed:
“Its visibility is really poor, and of course there’s still a possibility that the Windows strategy will fail. We don’t know.”
One last bit of good news for Nokia Corporation is that first quarter shipments of its Lumia lineup is pegged at 5.6 million units, which is 1.2 million more than the fourth quarter.
Does Nokia Corporation (ADR) (NYSE:NOK) have what it takes to dig itself out of a big hole in the smartphone market? Share your thoughts on this in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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