In spite of multiple predictions and a lot of hullabaloo about Nokia Corporation (ADR)(NYSE:NOK)’s Windows-based Lumia smartphones, the sales figures don’t look too promising. However, when HTC announced their own Windows 8 smartphone, a strong buzz was generated. Some even went on to say that Nokia is facing doom.
But Gartner research analyst Roger Sheng is highly optimistic because he feels that Nokia will finally turn around and be able to tackle its rivals easily. Sheng emphasizes that company portfolio has a vital role to play. In this case, Nokia’s intimate partnership with Windows will prove to be advantageous whereas HTC is still new in the Windows territory, as most of their smartphones are powered by Android.
The price range of Nokia’s Windows-based smartphones is also wider than HTC, with the phones costing from $150 to $600. Nokia will also get subsidies on their marketing campaign and royalty rates from Microsoft. HTC is still in the process of clearing up Microsoft royalty amounts. China presents a large and lucrative market, a fact which Nokia plans to utilize most effectively to promote their products, through its excellent connections with telecommunication companies and distributors.
It is true that Apple and Google are better positioned in the market as of now, but it does not mean that Nokia’s days are over. The Nokia-Microsoft collaboration is a rock-solid platform that will work wonders. However, it is too early to assess the fate of HTC and Nokia, so we have to wait and watch a while longer.