A Nokia Corporation (ADR)(NYSE:NOK) Oyj phone with Microsoft’s Windows 8 software might be released by Verizon Wireless. A press conference will be held in September by Microsoft and Nokia where the topic will be Nokia’s Lumia brand of Windows phones. This move by Verizon might be due to the fact that it wants to depend less on Apple’s iPhone and other devices that run on Google’s Android software, which is currently ruling the smartphone market.
Microsoft and Nokia will get an entry to the smartphone market if Verizon releases the phone and will give competition to Google. The news of the Nokia phone being launched collides with the anticipation generated by iPhone 5, which is to be released on September 12. Charlie Wolf, a Needham & Co. analyst in
has stated that the link-up with Verizon will benefit Nokia enormously by
acting as the stepping stone because it has faced issues while venturing into
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Nokia shares went up slightly while shares of Verizon Communications and Microsoft showed a decline. The Trophy from HTC Corp is the only Windows Phone that was released by Verizon more than a year ago. Unfortunately, the phone failed to meet expectations in terms of sales. Microsoft and Verizon could not gain much by the 2010 release of the Kin phone, which had just a 2-month run in Verizon stores.
The Lumia 710 was the first Windows Phone in US released by Nokia. It was launched at the T-Mobile USA in January. AT&T and T- Mobile Lumia are still using Windows 7 software. The releasing of the Windows Phone 8 operating system is a move on the part of Microsoft to partner with its new software for tablets and PC’s. The software is compatible with speedier, dual-core chips and high-definition screens.
4 million Nokia Lumia phones were sold worldwide, according to the figures in the 2nd quarter. Charlie Wolf has computed that the figure needs to be multiplied by 5 if Nokia wants to cover losses due to its prior smartphone offering – Symbian. If the Windows Phone 8 clicks with users, then Nokia can strengthen its position in the market.
Shares of NOK were up 4.35% to $2.88 in Wednesday’s session.