Informa analyst comments on Nokia's 2Q12 results
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Nokia has received criticism for relying too much on the Windows Phone platform. While there are other options, such as using the Android OS, Nokia is right to persevere with the Windows Phone OS. Lumia sales have picked up in 2Q12, particularly in North America, a key market in which Nokia has struggled in recent times.
As a stand-alone OS Windows Phone will not succeed, and will remain a niche product. However, Microsoft has a huge market share in terms of desktop computers, laptops and Ultrabooks. The release of Windows 8 across multiple platforms, including the new Surface tablet, will provide the consumer with more exposure to OSs unique features and benefits, and will give the boost in sales that Nokia needs.
However, the biggest challenge that lies ahead for Nokia is maintaining its market share in China where it faces tough competition from local brands.
Admittedly Nokia is running out of time; however it still has sufficient cash to make it through subsequent quarters, and is willing to do whatever it takes, whether it be decreasing its work force or spinning off parts of the business not relevant to its central strategy, such as luxury phone brand Vertu.
Source: Informa Telecoms & Media
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Informa Telecoms & Media aims to deliver strategic insight founded on global market data and primary research. The company works in partnership with its clients, informing their decision-making with practical services supported by analysts.
The company conducts primary and secondary research on the latest trends impacting the mobile communications, fixed communications and TV sectors, on a global basis. ITM's market intelligence services - World Cellular Information Service (WCIS), World Broadband Information Service (WBIS) and the Intelligence Centre - to give clients access to market forecasts and key performance indicators (KPIs), as well as detailed analysis and exploration of trends.
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