Nokia used to be the leader in the mobile phone business but their dominance has already been overshadowed by aggressive platforms such as the Android and iOS. Some of the reasons attributed to the company’s weakened market share was its reliance on Symbian as their smartphone platform of choice as well as their late use of touch screen technology.
The company’s partnership with Microsoft was their answer to dwindling sales. While the Windows powered Lumia line are selling well it still isn’t enough to get the company out of the red. Now a lot of people are questioning their Windows Phone platform choice and suggest that the company would have done better if they chose to make Android devices.
Bernstein Research analyst Pierre Ferragu is one of the latest experts to suggest that Nokia should drop their partnership with Microsoft and adopt the Android operating system. He suggests that the company should “take the pill before one cannot afford to do so anymore”. The continued reliance on Windows Phone for the high-end models and Asha for the low-end models isn’t bringing in the expected cash flow and is an exercise in futility, he added.
Ferragu also said that Nokia cannot afford to lose any more money with their Windows Phone only strategy. “Our second conclusion is about how Nokia should consider it’s near term future. The company is facing two structural challenges: its exposure to the disappearing feature phone market and the lack of traction of Windows phones. Both could cost Nokia a lot of cash in the near term, in restructuring, marketing / distribution support, and operational losses, which means it could be too late to address the problem in a couple of years. From that perspective, a decision concerning a new platform strategy appears urgent. Better to take the pill before one cannot afford to do so anymore. We wouldn’t be surprised to see Nokia adopting Android as its new low-end platform by year end.”
Nokia shares went down today by 10 cents and is now at $3.81 per share.