What Is Nokia Thinking? Navteq Bid Makes No Sense

From the beginning I was confused about Nokia's (NYSE:NOK) bid for Navteq (NVT). I am still confused.

From a pure technology standpoint, it makes no sense. NVT is a company that provides high quality content and content services for other applications, like Google (NASDAQ:GOOG) Maps, Virtual Earth and Yahoo (YHOO). Why does Nokia think this fits in their business strategy? If NOK had decided to bid for Garmin (NASDAQ:GRMN), I could at least see a roadmap to success.

Nokia is the market leader in the consumer level mobile phone market. Most of us have owned a Nokia phone at some point in our cell phone lives. For years Nokia has been trying to expand into the PDA/Smartphone market. Remember the N-GAGE – huge failure? Yes the new generation from NOK is supposed to be the "cat's meow", but the reality is the Smartphone market is driven by corporations. Are Corporate IT departments really going to support RIM's (RIMM) Blackberry, Palm's (PALM) Treo, Apple's (NASDAQ:AAPL) iPhone, plus a Nokia alternative? Not a chance. And the handheld market is owned by Nintendo with its Game Boy and Nintendo DS – not a place where NOK can win.

NOK needs a wakeup call. The NVT bid is foolish. This continued push into computers/handheld devices, is still failing. They need to stick to what they know. If they really want to bid for a company, try GRMN or Amsterdam based Tom Tom, the primary GRMN competitor.

Can anyone give me a reason not to sell NOK?

Disclosure: None.

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