Nokia is officially looking for a partner to introduce a smartphone into the industry, but will it be able to compete with Apple and Samsung?
With Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. Ltd. (OTCMKTS:SSNLF) leading the way in the smartphone industry for some years now, it will be a big surprise if some company even thought about the idea to break their duopoly. Nokia Corporation (ADR) (NYSE:NOK) disappointed many after it sold its mobile division to Microsoft Corporation (NASDAQ:MSFT), this might have been due to the increasing popularity of Apple’s iOS and Google Inc's (NASDAQ:GOOG) Android over their Symbian operating system.
Nokia’s decision to move over to Windows Mobile backfired on it. However, the Finnish company’s deal with Microsoft will end next year, which will allow them to manufacture its own smartphones. Nokia announced back in April, that it had no intentions to re-enter the smartphone industry. However, recently, the company has opened the doors to the possibility of licensing its brand name to mobile phone manufacturers. Nokia has said: “If and when we find a world-class partner who can take on those responsibilities, we would work closely with them to guide the design and technology differentiation.”
This statement indicates that Nokia will likely be returning to the smartphone industry, when it finds a partner who can manage the manufacturing, selling and marketing its devices. Notably, considering Nokia’s reputation, it is highly likely to find one.
Previously, Nokia has made use of its brand licensing model with Foxconn Technology to launch the Android running N1 tablet. This makes it likely that the company might facilitate Nokia’s return. Some rumors have indicated that Foxconn’s investments into Cyanogen could possibly be a part of its plans to partner with Nokia to make smartphones.
Nokia’s Symbian OS failed to challenge the iOS and the Windows Mobile platform was unable to capture the market share, when it partnered with Microsoft. We believe the only way Nokia will make it to the big is if it introduces Android running smartphones. Android currently holds the majority of the market share and it is everything Symbian once hoped to become. Nokia sold over 20,000 units of its N1 tablet within minutes of the launch in China, indicating that people are still inclined towards buying its products.
It's time Nokia re-enters the market, but it will only be considered a force to reckon with, if it partners with Google and introduces Android running smartphones. The Finnish company will likely be able to launch a smartphone in the fourth quarter of 2016, meaning we are still some way off from seeing Nokia making a return.
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