For the second time, Samsung Electronics confirmed that it is not purchasing Nokia. The same rumor cropped up last year, alleging that Samsung was already preparing to make a bid. That speculation was also shut down shortly by the South Korean company. The rumor prompted Nokia’s shares rise up to 6 percent on June 8th, then dropped to 0.7 percent again after Samsung announced the clarification in a rather terse email.
Nokia, which used to be the world’s number one mobile phone maker for fourteen years, had been toppled down from its position by Samsung, which currently still enjoys the position. In the past three months, Nokia’s shares fell to its lowest point in fifteen years, dropping up to 40 percent in shares. Simply put, Nokia shares are not exactly desirable to bid after, especially from Samsung, which is basking in smartphone success.
On the other hand, the fact that the price of Nokia’s shares are dropping could be one reason why people are speculating about Samsung’s interest. With those prices, Samsung could easily buy plenty of Nokia’s shares and control the company.
Still, the fact that Nokia is unable to gain any footing in the smartphone battle might be appearing as a turn-off for Samsung. Today, the South Korean company along with Apple are dominating the smartphone scene, while other OEMS are struggling to keep up. Nokia, however, is trailing in this race, which gives Samsung hardly any reason to want to purchase it.
In other words, Samsung is doing perfectly well without needing to buy Nokia. Doing so would simply mean a waste of resources that could otherwise be used in Samsung’s war against Apple. Instead of a failing phone company, Samsung might want to invest in designers that could provide them good-looking phones that look nowhere like Apple’s products. Thus, if Samsung sees that Nokia could provide them with the designs, it might change its mind about acquiring the Finnish corporation.