Nokia’s Windows Phone to Undercut the Competition
When Nokia (NYSE:NOK) unveils its new Windows Phones on February 27, it’s expected they’ll be a little bit on the cheap — at least pricing-wise. After Nokia dumped its own smartphone operating system last year, the smartphone maker went all in with Microsoft’s (NASDAQ:MSFT) Windows Phone platform. Unfortunately for Nokia, Window’s mobile has had very little impact on the overall market due to the relatively high cost of smartphones.
This new initiative of cheaper phones will be Nokia and Microsoft’s way of attempting to gain a larger foothold in the in the crowded, but growing smartphone market. According to many analysts, the strategy is seen as a necessary step if the alliance has any hope of eventually claiming success.
Last quarter Microsoft’s share in the overall smartphone market fell to merely two percent. Compare that to a three percent market share one year ago and 13 percent four years prior, according to data from Strategy Analytics.
Nokia will debut the new Lumia 610 as well as the higher end (and pricier) Lumia 900 at its news conference at the Mobile World Congress trade show in Barcelona this Monday. The new price initiative is expected to be announced then.
Here’s how these stocks are reacting to the news:
Nokia Corporation (NYSE:NOK): NOK shares recently traded at $5.62, up $0.04, or 0.72%. They have traded in a 52-week range of $4.46 to $9.42. Volume today was 10,970,415 shares versus a 3-month average volume of 30,595,500 shares. The company’s trailing earnings are $-0.41 per share.
Microsoft Corporation (NASDAQ:MSFT): MSFT shares recently traded at $31.50, up $0.06, or 0.19%. They have traded in a 52-week range of $23.65 to $31.61. Volume today was 16,621,562 shares versus a 3-month average volume of 55,424,200 shares. The company’s trailing P/E is 11.40, while trailing earnings are $2.76 per share.
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