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Could The Apple vs. Samsung War Lead To Good Times For Nokia?

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Could The Apple vs. Samsung War Lead To Good Times For Nokia?

It is unknown whether or not  Nokia Corporation (NYSE:NOK) will be able to regain its lost glory, but it is very possible that the coming days ahead could mark the resurgence of the Nokia brand. There are number of factors which are pointing towards such a conclusion. Some are the direct results of the efforts made by the Finnish company, while others pertains to macro environment.

The launch of  Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone 8 will be a huge boost the for Nokia, as it will provide a much enhanced OS, overcoming the hardships of the previous versions. May be moving to Windows 8, while ditching its home grown Symbian platform, could prove out to be one of the most important decisions ever taken in the history of Nokia Corporation (NYSE:NOK).

Another point in favor of the Nokia Corporation (NYSE:NOK) is Microsoft Corporation (NASDAQ:MSFT)’s selection of NAVTEQ as the commercial mapping technology. NAVTEQ, which is a fully owned subsidiary of Nokia Corporation (NYSE:NOK), will help it to reap the royalty fees, which in turn could be used for further R&D and marketing.

The ongoing fights between the competitors will surely going to help Nokia. The patent disputes between Apple Inc. (NASDAQ:AAPL), Samsung Electronics Co., Ltd. (LON:BC94), Google Inc (NASDAQ:GOOG), and Motorola etc will definitely undermine the prospect of the parties involved. The disputing parties will be spending on litigations and R&D to avoid patent disputes. This will also lead to certain models going off the shelf. Such disputes and their inevitable outcomes will definitely boost Nokia’s smartphones demand.

Nokia Corporation (NYSE:NOK) has long been following its restructuring plans. As a result, it has closed down many factories and has slashed numerous jobs to save on costs. Now is the time to reap the benefits of the plans, as it will command more control of its costs. The benefits from the plans will help the handset maker to re-emerge as a more agile and profitable supplier.

The currency market also seems to be favoring the Finnish company, with the steep decline of the EURO vis-à-vis both the USD and the Korean won. This will help the company to increase its EBIT (Earnings before interests and taxes) and gross margins.

Apart from this, there are rumors that Nokia Windows Phone 8 will launch with Verizon Communications Inc. (NYSE:VZ) in early September; this will again boost the demand for the Nokia handsets. What is good this time is that Nokia Corporation (NYSE:NOK) is coming prepared for both the top end segment and low & medium segment, with Nokia Asha to cater the low and medium, while Lumia for the top end market.

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Aman Jain
Personal Finance Writer

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