Is Nokia Corporation (NYSE:NOK) Clutching at a straw? In what seems to be a last ditch attempt, the once big force in the mobile industry is said to be engaged in talks towards inking a partnership with European carriers, says a report.
Nokia’s mobile business is rolling down the hill, and the report suggests that this new move is a well planned strategy to pull out its once profitable mobile business out of the gutter. The talks are geared towards creating a smooth entry for Nokia’s upcoming Windows 8 Phone based device. As such, a lot of accents have been directed towards the talks.
According to Financial Times, the deals are motivated towards tightening up on the number of carriers handling Nokia devices. The said carriers will also receive a piece of the revenue generated by Nokia phones. The primary purpose of the deal is to give carriers financial incentives to promote Nokia devices on an active level.
If the deals noted in the report come to see the light of day, they will mark a complete change in the manner through which Nokia handles it distribution. Typically, and of present, Nokia spreads out its distribution lines in an attempt to cast its net over as many carriers as possible. This is steered by the idea that enhancing the availability of its devices across all niches is more likely to generate greater sales.
If Nokia Corporation (NYSE:NOK) rolls out this new distribution strategy, it will be an exemplary display of perfect timing. Nokia needs a strategy overhaul now more than ever. Its current distinctive, yet disappointing strategy, has failed to meet expectations as candidly demonstrated in the $1.7 billion net losses.
Although investors were not all that jittery after Nokia dipped well below the break-even point, the company is still under a lot of pressure to turn things around. It now has to operate under tight finances in its attempt to secure a place at the high rollers table, which is all too familiar with Samsung and Apple Inc.(NASDAQ:AAPL). The company remains assurant that the Windows 8 Phone will be an all important catalyst for the Lumia.
Perhaps the aspect of perfecting timing comes out best after considering the melting pot of speculation generated over Apple and Google Inc (NASDAQ:GOOG). Apparently, speculation is rife that telecoms would love to see the Windows Phone soar so that Google and Apple have less influence.
Nokia’s move is a first and could just be the all important strategy overhaul needed to generate sales at Nokia.
It probably is the perfect time for change.