Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is in the process of offloading its money-losing devices division to Microsoft, but will that be enough to keep it from following in the footsteps of BlackBerry? Some aren’t so sure.
Will Nokia be able to do something else?
The most optimistic investors and analysts believe selling the devices division is the best thing Nokia can do. The company will then be able to focus more of its attention on the divisions which are currently profitable, like Nokia Siemens Network.
Many have suggested that the partnership between Nokia and Microsoft Corporation (NASDAQ:MSFT) has been doomed from the start. However, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) isn’t giving up yet. The company is expected to unveil six new devices on Oct. 22. That unveiling is going forward in spite of the pending sale of the devices division to Microsoft.
Nokia and Microsoft need some kind of “hit device”
USA Today columnist Mark Ververka suggests Nokia’s devices may fade into distant memories under Microsoft Corporation (NASDAQ:MSFT), much as BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s devices already have. He says Microsoft and Nokia need some kind of “hit device” which stands out from what’s already available on the market.
Of course he is certainly right, and with six new devices being unveiled later this month, there’s a chance that one of them could be the hit device investors and consumers are waiting for. Unfortunately, those devices might also be too little, too late for both companies as they battle to stay relevant in the smartphone and tablet race. We just won’t know until we see those devices, and even then, it will probably take time to see how adoption of those devices goes.
But the good news for Microsoft Corporation (NASDAQ:MSFT) is that it isn’t in danger of going out of business anytime soon. The restructuring process it has planned is long overdue, and it does need a great device.