Samsung Electronics Co., Ltd. (LON:BC94) became the first company to announce a Smartphone equipped with Microsoft Corporation (NASDAQ:MSFT)’s latest mobile software, leaving behind the highly anticipated launch of Nokia Corporation (NYSE:NOK)’s version. This is welcome and cheerful news for Samsung, after the landmark decision of $1 billion in damages going against it.
The announcement, made on Wednesday at a Berlin electronics show, certainly marks the trend of the increasing popularity of Windows devices among smartphone makers, after a U.S. jury decided many of Samsung’s Google Android-based phones infringed Apple Inc. (NASDAQ:AAPL)’s patents.
“It looks like a good phone, and seems like a pre-emptive announcement ahead of Nokia Corporation (NYSE:NOK),” said Sid Parakh, an analyst at investment firm McAdams Wright Ragen, of the Samsung phone.”Microsoft Corporation (NASDAQ:MSFT) or Windows never got their best teams, never got their best designs, just because Android was doing so well. With the change in the legal environment, there’s a case to be made that Samsung Electronics Co., Ltd. (LON:BC94) will likely shift some of those resources to broaden out or diversify their own exposure.”
The announcement by the Korean giant comes just days before the launch of the new Lumia line of smartphones using Windows Phone 8, in New York on September 5, by Nokia Corporation (NYSE:NOK).
Samsungs Electronics Co., Ltd. (LON:BC94) windows powered phone, ATIV S, has a 4.8-inch display, Corning “Gorilla” glass, and an 8-megapixel rear camera and 1.9-megapixel front-facing camera. Samsung’s ATIV S is the first in a “big lineup of new hardware” using Microsoft’s software, said Microsoft Corporation (NASDAQ:MSFT)’s executive Ben Rudolph in a blog posting.
“Expectations for a 40 megapixel or possibly 20 megapixel camera models are running high. If Nokia Corporation (NYSE:NOK) does not unveil a monster camera handset next week, many will be disappointed,” said Tero Kuittinen, analyst at mobile analytics firm Alekstra. But “this leaves Nokia Corporation (NYSE:NOK) plenty of room to draw a clear contrast with its upcoming announcement.”
Some analysts say the “The fact Samsung was allowed to be the first to announce is Microsoft’s backhanded way of letting other vendors know that Nokia is not getting special treatment.”
Along with the smartphone, the Korean company also showcased its other tablets using Windows 8 software, and the second generation of its popular Google Android-based Galaxy Note phone-cum-tablet “phablet” in the Berlin show. Samsung Electronics Co., Ltd. (LON:BC94) has created a new category with its original Galaxy Note devices, which have a smaller screen than tablets, but bigger than smartphones.
Microsoft stock ended the Wednesday trading up 2 cents at $30.65, while Nokia’s shares declined by more than 6 percent to $2.83 on Wednesday morning, with many analyst calling it a correction against a “largely unwarranted” jump, after the ruling over the patent dispute between Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94). The Finnish company’s shares jumped Monday following the ruling, with investors expecting the ruling will boost the demand for the Nokia’s Windows based smartphones.
“We believe it would be naive of us to consider last week’s ruling a positive for Nokia and more broadly Windows-based phones,” wrote Pierre Ferragu of Bernstein Research, in a note to clients, and added that Windows “is still very near zero in terms of consumer traction” in the mobile phone marketplace