While Microsoft and their platform are slowly expanding grounds, Nokia is continuing to travel down a negative path with sales plummeting and revenue decreasing. Compared to the glory days when the company’s brand was used to describe mobile phones as much as the term mobile, at present a radical change is required for them to continue within this competitive market. Analysts know this, consumers know this, and more importantly so does Nokia.
Along with countless reports and articles covering a potential join of the hands between Nokia and Microsoft, an investment analyst, who has sent a memo to the CEO of both companies urging them to work together and create Windows Phone 7 handsets, has provided a huge push in a positive direction.
The analyst, Adnaan Ahmad of Berenberg Bank, doesn’t hold back in his note with covering WP7’s (and – to an extent - Nokia’s) competitors and pointing out that he knows both Steve Ballmer and Stephen Elop must be “both sick and tired of hearing how great and innovative Apple and Android (Google) ecosystems are”. Moving onto say that “they have hundreds of thousands of applications, growing revenue at 50%+ per annum and gaining market share globally,” and he is absolutely correct in his referencing – but Microsoft already know this, they are in it for the long haul.
Directing at Nokia, Adnaan continues, “I remember the days when Nokia (with Jorma Olilla at the helm) ruled the roost, European market share was above 50% and US market share was in the 35% range.” While quoting what Stephen said in his recent Q4 earnings release, “Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it’s time for Nokia to change faster,” he agrees that now is the right time for Nokia to change (perhaps from Symbian altogether?) and with WP7 readily available in it’s infant stage, now could prove to be the only time for action.