Nokia ( NOK , quote ) is lookng to regain momentum through sales at the low end of the smartphone market, offering a $50 unit powered by software from Microsoft ( MSFT , quote ) and sold by the T-Mobile group of Deutsche Telekom AG ( DTEGY , quote ).
As reported on www.emergingmoney.com in a previous article, " Nokia is calling out for help, but is Research In Motion the answer? (NOK, RIMM, AAPL, MSFT) ," an acquisition of Research In Motion ( RIMM , quote ) is being considered, possibly with Microsoft (MSFT).
In a Wall Street Journal piece, "Nokia Re-Enters US with $50 Smartphone?," Nokia (NOK) is offering a $50 Lumia 710 in the United States. According to Nokia U.S. President Chris Weber, "It's the right space to launch our first Windows phone in the US. It is the greenfield for us."
It will be interesting to see how much support Deutsche Telekom (DTEGY) lends to the effort after trying to sell T-Mobile for $39 billion to AT&T ( T , quote ).
Nokia (NOK) and T-Mobile worked together on the Astound, which did poorly earlier this year, as stated in The Wall Street Journal . This has certainly been reflected in the stock performance of Nokia for 2011, as ended the year off almost 50%.
On a quarterly basis, both sales growth and earnings growth are down for Nokia (NOK). The trend is not the friend, either, as Nokia is trading below its 20-day, 50-day and 200-day moving averages.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
