Nokia ( NOK , quote ) is calling out for help as evinced by its stock performance for 2011, but acquiring Research In Motion ( RIMM , quote ) does not appear to be the right answer now that Deutsche Telekom AG ( DTEGY , quote ) is still trying to move T-Mobile.
As detailed in previous articles on emergingmoney.com , Nokia needs to make a move -- and soon. According to the head of Nokia, Chris Webber, from the piece, " Nokia is shipping Microsoft phones, but still a long way from taking market share from Google ," if the Windows Smart Phone does not sell well, "it doesn't matter what we do" as the future for Nokia will be grim.
Well, the future for Nokia has arrived.
Nokia is now off about 50% for the year, trading under $5 a share. According to an article in The Wall Street Journal by Will Connors, Joann S. Lublin and Anupreeta Das, "Microsoft, Nokia Flirted with RIM," NOK is considering joint bid for Research in Motion (RIMM) with Microsoft ( MSFT , quote ).
While Research In Motion is strong in Asia -- particularly China and India, where its willingness to let governments monitor accounts has made Blackberry friends in high places -- it is difficult to see what this acquisition would do to improve the performance of NOK, particularly as it is still laying off workers from Nokia Siemens.
MSFT would stand to gain another phone manufacturer dedicated to its operating system. NOK would get to bury a competitor and, theoretically, supplant the Blackberry with its own handsets, but it is still a mystery how exactly that would revive the Finnish giant's fighting spirit or its stock.
With Deutsche Telekom still trying to find a strategic solution for T-Mobile, there are clearly more motivated sellers in the broader telecom industry than buyers. A similar case could be made for the equipment manufacturers.
For the year, Research In Motion is down about 80%. Earnings and sales for both Research In Motion (RIMM) and Nokia Corporation (NOK) are both down as phones running on Apple ( AAPL , quote ) and Google ( GOOG , quote ) operating systems divide the "smart" end of the market.
Google famously has no captive handset maker to the same degree to which Apple makes the iPhone or Microsoft now has Nokia. If it looks like MSFT is on an acquisition spree, expect rumors that the remaining half of Motorola ( MMI , quote ) may be in play as well -- as a captive Android manufacturer.