|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Will Purchasing Nokia Be of Any Use to Microsoft?
Posted by: Nitish (IP Logged)
Date: November 6, 2013 10:10AM
So the time has finally come when we get to know about Kantar’s monthly market share report for the smartphone markets all over the globe. Microsoft's Windows phone continues to show strength while establishing itself as the third ecosystem. This can be accredited to the consistent production of low-end smart phones by Nokia, with Lumia 520 to name one.
Taking a peek at the U.S. economy, we find that iOS (AAPL) and BlackBerry continue to lose market share while Android (GOOG) gained the market share they lost, which changed the fortunes for the Windows phones as their decline came to a halt. For the record, Android in the last quarter claimed 57.3% of the American market share, doing better by around 2.2% in the last quarter.
On the other hand we found Apple’s iOS losing its market share and facing 35.9%, down from 39.3% in August. The Windows phone had not been seeing good days but its fortunes turned somewhere around September when its American market shares picked up at 4.6% due to the cheaper Nokia models, and it will be interesting to see if the ecosystem can keep this up.
Android also rules the Eastern world. China is another market that Android dominates and where Windows phones seem to struggle. Windows Phones current market share is around 2.5% of around 0.5% from the last month. It is down from 4.9% in June, though. Android increased its Chinese market shares by around 9%, jumping to 81% from 72%. Apple’s iOS has not seen good days so far and continues to perform poorly, as its market share fell to 13%, falling to a market share level of below 20% twice in the same year. The Windows phone’s market share in Australia is around 9.3%, up from 6.5% last month. It has thus attained an all-time high in terms of the Australian market, beating the previous record of 7%.
If we consider the European scenario we find Windows hones trying to capture the market share. It captured around 9.8% of the market share, up from 9.2% last month. However, things weren’t as good for iOS as it continued to lose shares of the market which went from bad to worse, falling to 14.6% from 18.5% whereas Android rose at a slow but steady rate, increasing its market share from 69.8% to 71.9%.
Come next year and Nokia’s mobile phone division will be taken over by Microsoft with Nokia Lumia being sold as Microsoft Lumia. Barring Xbox, MSFT hasn’t really been able to sell its devices as they have not gone down with consumers well. This change will thus reduce Lumia sales as Nokia loyalists would not want to buy the new Microsoft version of the phone.
If we look at the financial perspective, this investment might not be very lucrative for Microsoft. In spite of a consistent loss of market share, Microsoft continues to perform strongly. The PC market share of the company might have taken a battering and been reduced by double-digit figures, but the revenues and profits for the company kept growing. The company thus has much riches in terms of cash and is expected to continue the trend of high revenues in the future, also making it a good investment option.
Stocks Discussed: MSFT, AAPL, GOOG,