Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is on track to become a major smart phone seller by the end of 2013 as the company continues to increase the quality and range of its smart phones. By the end of the year the company is likely to put the majority of its smart phone troubles behind it, and become a force in the mobile device world once again.

Nokia

The rise in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) results will be driven by the quality of its smart phone offerings. On the hardware side, which Nokia is most concerned with, the company has already met the level of quality marked by Apple Inc. (NASDAQ:AAPL), Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and others.

Software is Nokia’s biggest problem, but that side of the market is improving remarkably quickly. Microsoft Corporation (NASDAQ:MSFT) has seen its Windows 8 Phone App store improve quickly in the first half of 2013, with more than 160,000 apps available in the store at the end of June 2013. The apps drove an average of around 200 million downloads a month, impressive for a relatively new platform.

Nokia’s new groove

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) launched its latest smart phone, the Nokia Lumia 625, a mid budget smart phone with a large screen, earlier today. The device is the least expensive 4G handset available to date, and demonstrates the diversity the company is bringing to its lineup. Unlike Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB), Nokia is aiming at many different markets. The important thing is that it’s maintaining a certain level of quality throughout its smart phone line.

In the first quarter of the 2013 fiscal year Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) lost 3 cents per share and in the second quarter the company broke even, excluding items. Analysts are looking for the company to break even again in the third quarter of the year, though it seems likely the company will do better than after beating estimates in its most recent report.

Nokia on the charts

In the first couple of quarters of next year, analysts will no longer be lumping Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) in with the Other category when talking about smart phone sales. Nokia is doing better right now than it has in years, it’s become an established brand once more and consumers know what it means.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) means a quality handset with Windows. For a growing number of customers that’s exactly what they want. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) fortunes are looking up for the year ahead.