The Rumors Are Getting Stronger: Nokia Is Staging A Comeback To The Smartphone Arena

A couple of weeks ago, I wrote an article for TalkMarkets where I defended the idea that Nokia (NOK) could be pursuing a return to the smartphone arena. At the time I argued that Nokia should return to the smartphone industry through a large or a small acquisition. Now, we have Re/Code citing sources stating that Nokia is preparing a new smartphone made in-house.

 

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(Photo: Kārlis Dambrāns)

If the rumors materialize, this will be the first mobile device that Nokia will launch since selling the Mobile Phones unit to Microsoft (MSFT). Re/Code sources state that Nokia Technologies, the unit holding the mobile patents, is responsible for the conception and design of the new device. This is the leanest approach to a comeback, doing in-house design and conception, leveraging the portfolio patents and outsourcing manufacturing and distribution. This way the risks are reduced, but the pace of innovation is also slower. All-in-all, this might be positive in the sense that it puts a foot in the door of the smartphone market and also gives time to the company to figure out where to focus its attention.

The timing of the acquisition of Alcatel-Lucent (ALU) is also interesting, since it will bring more patents to the company and liquidity. However, ALU’s balance sheet is not that rosy and the integration in Nokia will mean a deterioration of the debt ratios.

Bottom line: Very interesting news, but the short term impact will be much reduced. All the attention will be centered on ALU’s integration in Nokia and this might be a long digestion since Alcatel has been showing very poor results for a long time.

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Narendran Kumar 7 years ago Member's comment

guess u are the problem considering how all the products u use are getting dead in a short duration,tell me, is Babu still alive???? :/ -concerned citizen.

Fred Smith 7 years ago Member's comment

They need to use android I think because not many developers create games and apps for windows phones. I have one and it is awesome and very tough, but what lets it down is the app store.

You Doono 7 years ago Member's comment

if Nokia was not in hands of microsoft, likely probability of seeing Nokia on 30 percent. it would have been tougher for others to compete. advantage samsung on account. Nokia simplicity for user and soild hardware is no match, except few like HTC MOto, and LG to some extent.

Ian Young 7 years ago Member's comment

I dont see a problem with my Nokia windows phone, in fact I like it, very easy to use and lots of apps that actually work.

Rekkha Babu 7 years ago Member's comment

Nokia a hell no, big no babe, I bought Nokia e52 from Dubai, rs.10000/- worked well exactly 4 months, total dead, even Nokia care said motherboard not in stock, but I liked the metal design, I bought another one in India, worked six months, same problem, dead, then bought a used e52 for 4000 rupees, that too dead in 4 months after the software update.... I still love the design, again I bought used one for 2500₹, three months before, last week that also dead my dear... But I have to tell you one thing my first phone was Nokia and I used it for 7 years without any problems, even I haven't changed the battery, old is gold.. But those days I haven't used Internet. That might be the culprit. God knows

Narendran Kumar 7 years ago Member's comment

guess u are the problem considering how all the products u use are getting dead in a short duration,tell me, is Babu still alive???? :/ -concerned citizen.

Anas Musthafa 7 years ago Member's comment

Nice I suggest Nokia to come back in windows Nokia Lumia 1520 my mobile very nice 😊 good mobil

Akihika Naga 7 years ago Member's comment

i suggest nokia to come back n adopt android insted of windows os,,,,if samsung can make it big,y cant nokia,,they just need a big come back but i can only c its possibilty only through android,,

Mikhail Prince Roldan 7 years ago Member's comment

in nokia windows 10 android apps are already functioning ;)

Jay DeDios 7 years ago Member's comment

i suggest if nokia want to come back in smart phone industry

must be adopt android,abolish windows mobile that is the best solution design and color is not a big deal.

Rocky S 7 years ago Member's comment

Miss Nokia..Microsoft the backstabber..