Nokia Corporation (NYSE:NOK) has been the worst affected phone maker due to the emergence of smartphones. Now its own smartphone could turn the company around. The struggling phone maker is going to make a joint announcement with Microsoft Corporation (NASDAQ:MSFT) on September 5. Analysts are anticipating that Nokia may announce the release of the next generation Lumia smartphones running on Windows Phone 8.

Nokia Lumia

The already launched models of Lumia are based on the Windows Phone 7 platform, and their sales have exceeded analysts’ expectations. The company sold 4 million Lumia smartphones during the second quarter this year, double the sales of 2 million handsets sold in the first quarter.

Sandeep Deshpande, technology analyst at JPMorgan Chase & Co. (NYSE:JPM), appreciates the company’s cash management capabilities during tough times. However, he is still uncertain whether Nokia will be able to make a full recovery. Mr. Deshpande said that the consumers’ appetite for new smartphones will define the company’s future, not the Apple vs. Samsung verdict.

“We are underweight on Nokia Corporation (NYSE:NOK), as we believe the coming quarters will remain challenging for the company as it transitions its smartphone portfolio to Windows OS,” told Sandee Deshpande.

However, the Scotiabank analyst, Gus Papageorgiou, has entirely different views. He says that Microsoft Corporation (NASDAQ:MSFT) has a huge patent base, and if its Windows Phone 8 gains any edge over Android, it will directly benefit Nokia. Both companies will use their patent power and partnership to develop innovative products and minimize the legal risks.

“More carrier support and devices imply a stronger Windows Phone ecosystem which would translate into higher sales of Nokia’s Lumia devices,” said Gus Papageorgiou.

Recently, many top executives of Nokia Corporation (NYSE:NOK), including CEO Stephen Elop, bought company shares worth over $1 million to show their commitment to the company and confidence in its future.

JPMorgan Chase & Co. (NYSE:JPM) has set the target price for Nokia Corporation (NYSE:NOK) at $1.50. Scotiabank is more optimistic, upping the target price from $2 to $3.55 for Nokia stock.