It’s crunch time this month for Nokia–but odds look better than six months ago
Those positive reviews for Microsoft’s (MSFT) new Windows Phone 7.5 operating system are raising a smile in Redmond, I’m sure. But the big sigh of relief that you can hear is from Nokia (NOK.) That company bet its smart phone future on Microsoft’s operating system when it decided to sideline its own Symbian operating system in favor of Microsoft’s platform.
The transition has been extremely painful for Nokia as the company saw phone sales fall by 20% in the second quarter as Nokia, once the market share leader was passed by both Apple (AAPL) and Samsung. Nokia hopes to begin slowing the fall in its global market share against Apple’s iPhones and Android-based phones with new models expected to be announced at the yearly Nokia trade show in London at the end of October. (Assuming, of course, that Nokia can then get the new phones to market by early November to meet the holiday season.)
Nokia’s strategy looked very shaky after Microsoft announced its own attempt to get back in the phone game last year with Windows Phone 7. Reviews were generally positive but questioned if the operating system was ready to play with the big boys. Windows Phone 7 didn’t have Twitter support, Internet sharing, copy-and-paste, visual voicemail, or multitasking. All those competitive gaps have been filled in Windows Phone 7.5.
Plus the operating system has a unique look and feel that makes it something other than an iPhone wannabe. The home screen displays color tiles that represent collections of information and applications organized around a theme. The People hub, for example, collects contacts and social network feeds. The tiles also include automatic updates with things like newly received emails or calendar changes.
I wouldn’t say that Windows Phone 7.5 marks the end of Nokia’s troubles. Read more
Apple and Google go head to head in China’s mobile phone market
Ladies and gentlemen. In this corner, wearing the Macintosh red trunks, Apple (AAPL) and its partner China Unicom(CHU)
In the other corner, wearing the Chrome trunks, Google (GOOG) and its partner China Mobile (CHL).
That’s the lineup that’s about to cross gloves in China’s smartphone market later this year, according to The Financial Times.
Apple is days, weeks, months away from signing an exclusive, three-year deal with China Unicom, the country’s No. 2 wireless operator, for its iPhone.
Google is about to launch a line of smartphones based on its Android operating system with China Mobile, the country’s biggest wireless operator.
At stake is not just China’s wireless market but momentum in the global battle over smartphones. Read more
Head to head: Apple versus Nokia. Which is the better stock to buy?
Apple (AAPL) crushed Wall Street estimates when it reported earnings on July 21. Earnings per share for the company’s fiscal third quarter grew 13% from the third quarter of 2008. Revenue grew by 12% in a quarter when almost no company is reporting any sales growth.
Nokia (NOK), on the other hand, stunk up the joint with its second quarter results announced on July 16. Earnings per share did meet expectations but that was the last piece of good news that the cell phone maker delivered. Revenue missed projections by 3.8% and plunged 24.6% from the second quarter of 2008. Unit volume fell 15% from the second quarter of 2008. And the company took back its forecast that it would pick up market share in 2009. Now Nokia is saying its share will stay flat this year.
So which of these two stocks is a better buy? It’s not as easy a decision as it looks. Read more
