Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s Lumia could apparently help Microsoft to clock in sales numbers of around 50 million Windows Phones this year, according to a report from Seeking Alpha by Alcaraz Research. The report said that Microsoft Corporation (NASDAQ:MSFT) should speed up its deal of acquiring the Devices and Services segment from Nokia. The projection is based on a historical perspective as well as recent developments.
Rising numbers for Windows phone
Back in 2011, IDC numbers showed that Windows-based phones had a meager 1.8% share of the total smartphone market. The advent of Lumia handsets by Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) helped Microsoft to sell as many as 9 million units in 2011. But in 2012, Lumia phones came out even stronger driving Windows Phone to a growth level of 98.9% year over year. A similar growth was experienced in 2013, thanks in large part to Windows 8 and the marketing subsidies.
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“For 2013, Windows Phone was and still is the fastest smartphone platform for the next 5 years. Momentum is on the side of Microsoft and Nokia,” says the author.
The report suggests a few more factors that would help Lumia to gather 50 million unit sales. According to the report, Cortana Virtual Assistant in Windows Phone 8.1 would be a significant factor while other factors are free Windows phone 8.1 and SensorCore SDK from Nokia.
Nokia shares present a good opportunity
Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) hired Stephen Elop as its new CEO in 2010, and by February 2011, he strengthened the Finnish company’s smartphone business. Elop closed the Symbian and Meego platform and opted for Windows Operating system instead of adopting Android.
According to some critics, Elop was knowingly brought into the organization to depress Nokia’s business, and make it fit for a Microsoft takeover. Under Elop, Nokia lost around 61% of its share value and dropped to around 83% in the year 2012 due to significant losses in Device and Services (D&S) segment. But Elop’s intelligent move to make a difference with Windows Phone instead of manufacturing an Android-based phone worked in favor of the company, following which Microsoft placed the deal before Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) to take up the company’s D&S segment along with its 10 year patent licensing agreement.
The deal between Nokia D&S segment and Microsoft earned Elop a massive bonus of €18.8 million along with the opportunity to head the Microsoft’s device division. Elop’s decision to go with Windows OS paid off well for him and the company, and now may enhance the value for the shareholders.
At present, the stock market is in a bearish zone suggesting that Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares would become even cheaper from this level. The report suggests that investors should take a drop in price as a good opportunity to buy more of Nokia’s stock.