Is Nokia (NOK) Bad for Microsoft (MSFT) Windows Phone Sales?
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Nokia (NYSE: NOK) was recently reported to occupy 70 percent of Microsoft (Nasdaq: MSFT) Windows Phone 8 (WP8) sales and the total global smartphone market share for WP8 has been stagnant at 3 percent or less. The combination, according to Digitimes is ebbing the desire of other handset makers to use WP8 in future devices.
Since launch of WP8 in Q412, Nokia has released six different handsets, while Samsung has just one and HTC initially launched two. Acer, ASUStek, and ZTE were planning to launch smartphones equipped with WP8 in 2013, but have since deferred those launches due to lagging performance/demand of the OS.
Other key factors include Microsoft's unwillingness to budge on the WP8 licensing cost, as well as concerns that lack of ability to differentiate functions on smartphones, there will be little incentive for customers to not go with a Nokia device.
Into the open, Microsoft and Nokia are both indicated lower.
Since launch of WP8 in Q412, Nokia has released six different handsets, while Samsung has just one and HTC initially launched two. Acer, ASUStek, and ZTE were planning to launch smartphones equipped with WP8 in 2013, but have since deferred those launches due to lagging performance/demand of the OS.
Other key factors include Microsoft's unwillingness to budge on the WP8 licensing cost, as well as concerns that lack of ability to differentiate functions on smartphones, there will be little incentive for customers to not go with a Nokia device.
Into the open, Microsoft and Nokia are both indicated lower.
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