Nokia (NOK) Banks on AT&T (T) for U.S. Turnaround, And It Could Happen...

June 7, 2012 7:38 AM EDT
Nokia Oyi (NYSE: NOK) is looking to grow in the U.S., but not with Verizon (NYSE: VZ). Not yet, anyway.

Instead, the Espoo, Finland-based mobile giant is planning to make a big splash with its Microsoft (Nasdaq: MSFT) Window Phone on AT&T (NYSE: T) and T-Mobile networks.

Currently, Nokia's Lumia 900 4G LTE device is available on AT&T and T-Mobile for the price of $99.99 with a two-year contract. It's expected that Nokia will expand to Verizon and Sprint (NYSE: S) later on in 2012, particularly with Windows Phone 8 debuting in the second half of 2012.

Nokia plans to build on initial success with its Lumia 710 earlier in the year by offering carriers a "unique proposition," an effort to position the Lumia as different from competitors Apple (Nasdaq: AAPL), Samsung, and Google (Nasdaq: GOOG) devices.

Samsung's highly-anticipated Galaxy S III will launch within the next month, while Apple is expected to release a new iPhone later in 2012. Though many people will initially believe Windows Phone doesn't stand a chance against iOS and Android, the introduction and implementation of Windows 8 will create a similar environment to the one both are currently enjoying, allowing phones to connect with PCs and TV sets. This is an area where Research In Motion (Nasdaq: RIMM) failed to adapt, and now that company is looking for partnerships or possibly a stake sale to stay afloat.

In Canada, Nokia will be working with Rogers Communications and Telus Corp.

Shares of Nokia are down 1.4 percent ahead of the bell Thursday. We'd now like to direct you to an early March article written by highlighting Nokia as potentially the best stock to own in 2012. Click here for more. Of course, Nokia is 41 percent lower since then, largely after issuing a first-quarter EPS warning.

(Note: the author doesn't have a stake in Nokia or plan to initiate one within the next few days.)

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