Nokia (NOK) Moves Higher on Strong Expectations in China

January 2, 2013 8:36 AM EST
Nokia (NYSE: NOK) is seeing some upside action on positive sentiment Wednesday.

Much of the action might be coming from a SeekingAlpha article highlighting recent accomplishments, including robust sales of its Lumia 920T in China.

The author, Mohammed Bazil, notes that Chinese carriers migght not want to follow in the footsteps of U.S. counterparts and a vying to offer something new. China Mobile (NYSE: CHL) is said to be offering the Lumia 920T at one yuan, or basically free, with a two-year contract.

He also points out that China's massive shopping season happens in January, instead of the November to December run seen in the States and other parts of the world.

One point to make is that Nokia is unlikely to report any of this in the upcoming quarter. Though Lumia sales were firm in the U.S. and Europe, the big gains won't be seen until the following quarter. That might hint at a little more downside for Nokia ahead amid the current sentiment, but things might play out well should Nokia be able to make it over the holiday hump.

Let's also not forget that a few more operating systems might be hitting the market soon. Samsung has its MeeGo-based Tizen in the works while start-up Jolla is also looking to release a MeeGo-based operating system in Sailfish. While Nokia has the strength of Microsoft (Nasdaq: MSFT) behind the name, competition is always looming.

Shares are up 6 percent early.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Insiders' Blog, Trader Talk

Add Your Comment