Nokia Corporation (NYSE:NOK) might surpass its rival Apple Inc.(NASDAQ:AAPL), before it promotes the highly anticipated iPhone 5, because Nokia Chief Executive Stephen Elop has announced that a new smartphone will be launched very soon and it will use Microsoft Corporation(NASDAQ:MSFT)’s latest Windows 8 software. Nokia will hold a trade show in Helsinki on Sept. 5-6, which is just before 12th September, where Apple is all set to unveil its iPhone 5.
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Nokia has been struggling to cope up in the market, because it rivals have surged way ahead. Although no confirmation is available about what will be announced at the trade show, quite a few analysts have predicted that Nokia will launch a new handset to combat the fame of Samsung's Galaxy smartphone and iPhone.
Elop has vaguely stated that Windows 8 smartphones will be released soon, but it may or may not be at the trade show. Within moments of Elop’s statement, the shares of Nokia shot up. Shares of Nokia were doing poorly, but they had increased by 5.6% at 2.12 euros. This occurred after Standard & Poor's downgraded the shares and rated them BB-, a totally negative ranking.
Elop is a Microsoft loyalist even though Windows Phones have not tasted much success, as he used to previously work there. He joined Nokia in 2010 and he has been roped in to strengthen Nokia’s position in the market against Apple and Samsung. Nokia has stopped using the Symbian software like it used to, in 2011.
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Although the sales figures of Nokia are disappointing when compared to Apple – Nokia 1.53 billion euros in the second quarter and only 4 million Windows phones were sold whereas Apple sold 26 million iPhones and Samsung sold about 50 million smartphones. S&P had ranked Nokia in April to BB+ - junk status, when it becomes too risky for pension funds investors, but Nokia has remained optimistic by stating that they have enough funds and is saving up.
Shares of NOK ended higher by 6% to $2.64.