Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has been losing money on its handset business for quite some time, and at this point, investors and analysts just want to know when that will stop. We might not be far from it, especially if the company continues to grab large enterprise customers.
Delta adopts Nokia handsets
Today Eric Zeman of InformationWeek reports that Delta Air Lines, Inc. (NYSE:DAL) has adopted Nokia’s Lumia 820 handset. The airline bought 19,000 of the handsets to give to their flight attendants. Those handsets are loaded with customized software made by Avanade Inc. The software runs on Microsoft’s Dynamics for Retail, a mobile point of sale platform.
Delta said it will use Nokia’s handsets to not only improve customer experiences but also enable flight attendants to accept onboard credit and debit card purchases. Those purchases include seating upgrades, food and drink purchases and more. The system is expected to speed up transactions and also make it possible for flight attendants to offer other services for passengers, like looking up flight connection information.
The airline has agreed to use Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s hardware and Microsoft Corporation (NASDAQ:MSFT) and Avanade’s software for three years. It expects to have the full system deployed by the end of this month.
Nokia nabs other enterprise customers
Delta isn’t the only major enterprise customer switching from other systems. Britvic announced earlier this month that it was switching. Other enterprise customers which have begun switching to Nokia’s Lumia line include Germany’s O2, Sara Lee, Telefonica and Mall of America.
And as Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) continues to expand its Lumia line, the company is undoubtedly making sure that there’s a handset to suit anyone’s needs. Some analysts estimate that Nokia just needs to sell 10 million handsets with an average selling price of around $215 and a 25 percent gross margin in order to make its handset business profitable. Just line up a few more major enterprise customers, and we could start seeing Nokia being taken far more seriously within the industry.
Shares of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) and Microsoft Corporation (NASDAQ:MSFT) each rose as much as 2 percent during the trading day Thursday. Shares of Delta Air Lines, Inc. (NYSE:DAL) rose 3 percent.