Wednesday, December 5, 2012

Nokia Corporation (ADR) (NYSE:NOK) Hits 7-Month High as Deal With China Fuels Hopes

Nokia Corporation (ADR)(NYSE:NOK) is planning on partnering in a sales deal with China Mobile, which is the biggest mobile operator in the world. The agreement will give Nokia a chance a chance of winning back the Chinese market share from Apple iPhone.

China Mobile has more than 700 million subscribers but it has no contract to sell iPhones. It will start selling a version of Nokia Lumia 920 smartphone in the largest mobile market of the world.

Nokia shares were up 8.7% at 2.75 Euros on the Helsinki bourse.

Natixis Securities analyst Eric Beaudet feels that they will have an advantage that their primary competitor does not have.

Sales of Nokia Lumia 920 and 820 models that operate on Windows Phone 8 software of Microsoft are seen as significant for Nokia as it attempts to regain global market share from Apple and Samsung.

Analyst from Nordea Markets, Sami Sarkamies said that even though it does not come as a surprise, it still means a great opportunity for Nokia. This market has a lot of piled-up demand for top-notch smartphones.
Nokia’s stock is down 28% as of this year, even though it has edged higher in the latest weeks with hopes of potential Lumia sales. Shares of NOK are up8.50% to $3.73, its new high since late April.

CEO and President, Stephen Elop has stated that people across the globe are responding positively to the latest Lumia devices and the company feels confidence that the enthusiasm will spread to China.

Nokia has launched Lumia 620, which happens to be cheapest Windows Phone smartphone. It will go on sale in January and will be priced at $249. Analysts feel that the launch is another reason behind the positive share reaction.

Nokia’s share of the global smartphone market has shot down to less than 10% from 50% during its initial days before iPhone had made its entry in 2007. Presently, Nokia depends on Windows after getting rid of its own software environments the previous year. 


  1. Nokia is doing all the right things at the moment. The 920 is an amazing piece of hardware and the WP8 experience has been great so far.

  2. The main thing is that they are back as an innovator.

    920 is indeed amazing piece of hardware. The rock solid build is a sign of true quality - compared with state of the art technology...

  3. If they are looking forward they should be working on their successor to the current raft of phones, a new cheap version which doesn't have to innovate much but a new high end device with more innovation. This will keep the momentum and will show up the competition for being the slow movers. This is very important as it is all about changing customer sentiment and perception now

    1. NOK already has a strategy to defend against cheap Android clones.

      Their Asha line of phones have nearly all of the frequently used Android features (FB built in). But it does not have the gaping security holes that come with Android.

      Take a look at the emerging markets. Asha phones have been gaining market share rapidly against low end Droid clones.


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