The Microsoft (MSFT) smartphone rumor refuses to go away. Though a company exec denied the rumor...

The Microsoft (MSFT) smartphone rumor refuses to go away. Though a company exec denied the rumor in June and suggested Microsoft won't compete with Windows Phone partners such as Nokia (NOK), BGR reports a "trusted source" indicates Redmond is working on a high-end smartphone, with a launch expected in the coming months. A Chinese site recently claimed Microsoft's phone will be sold under the Surface brand, and be available in 1H13.

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Comments (29)
  • jimdart
    , contributor
    Comments (147) | Send Message
    Does it make sense for them?
    2 Oct 2012, 12:25 PM Reply Like
  • techy46
    , contributor
    Comments (12646) | Send Message
    Well, we get back into the same old discussion. Nokia's worth to the Windows Phone ecosystem has to include devices, manufacturing and distribution, map services and patents. So by the numbers it's 3.7b shares times $3-4 PS or $11-15b market cap. There's also HTC, Samsung and some smaller WP players at stake. WP smart phones for the time being are unlike tablets which are really PC's which have a $350b market and can withstand Microsoft's Surface taking some percentage of that revenue say 5-10%. If WP gains considerable traction in 2013 than Microsoft will wait on Surafce phone but if Surface tablets kick start W8 tablets and the 3rd party WP phone vendors fail to perform Microsoft will be left no option but to either make their own smart phone or buy Nokia if Nokia's still small enough to swallow.
    2 Oct 2012, 03:51 PM Reply Like
  • dhdhoora
    , contributor
    Comments (842) | Send Message


    As usual, you're right on spot with your Microsoft smart phone thesis! I'm curious what's your current take on a Nokia tablet? Is Nokia going to produce a tablet (probably 7"):
    a) Under its own brand
    b) As an OEM to MSFT; or
    c) Not going to produce a tablet.


    BTW, I was in our local Best Buy watching the younger generations (hey, I'm a Boomer...) buy Smartphones. Very few even stopped at the display counters which were awash will all makes, models, and plans. They went directly to the sales cubicles to sign up -- I assume most went for iPhone 5 or Galaxy III S. So, its going to take a lot of marketing muscle to move the Lumia 920 -- clearly not going to move based on side-by-side techie comparisons with other phones. But, as an old techie, I'm patiently awaiting for my 920...


    All the very best,
    2 Oct 2012, 04:08 PM Reply Like
  • Panwo1
    , contributor
    Comments (15) | Send Message
    MicroSoft could steal a huge chunk of the young male market by coming up with an exclusive XBOX 360 app for WP8 that is compelling enough to get users of its XBOX to take a look at their now phones.


    MicroSoft needs to leverage their strengths like MS Office, XBox 360 and integration for Business. If they don't take full advantage of these things to drive tablet and phones sales they deserve to fail.
    2 Oct 2012, 10:07 PM Reply Like
  • stealthology
    , contributor
    Comments (392) | Send Message
    Relax, Nokia shorter's just got kinda pissed yesterday at the Oracle announcement.
    2 Oct 2012, 12:39 PM Reply Like
  • techy46
    , contributor
    Comments (12646) | Send Message
    Yep, I wonder what Nokia would say to Microsoft about using Nokia Drive, Maps and Transport on a Surface Phone? Maybe Apple and Microsoft could jointly develop mapping apps.
    2 Oct 2012, 04:36 PM Reply Like
  • sreimer77
    , contributor
    Comments (242) | Send Message
    What B.S. Later we will find out that all Surface products are manufactured by Nokia anyway. Since when does MSFT manufacture anything? They may design it, but at the end of the day they will not manufacture. So the question is, who will? Obvious answer would be Nokia.
    2 Oct 2012, 12:55 PM Reply Like
  • berylrb
    , contributor
    Comments (2384) | Send Message
    interesting, Nokia is Microsoft's Samsung ...
    2 Oct 2012, 08:21 PM Reply Like
  • turtledividend
    , contributor
    Comments (272) | Send Message
    Yes, I also had the same feeling about surface being manufactured by Nokia. Imagine that.
    2 Oct 2012, 09:52 PM Reply Like
  • tsiwen
    , contributor
    Comments (110) | Send Message
    Logical that Nokia will become a manufacturing unit for MSFT; if you think longer range than the 30 day shorts do. No chance of bankrupcy, as MSFT would use foreign cash(earnings) to buy it first. Manufacturing excellent phones is Nokia's expertise; they probably will make the X-box someday. Question is, how much would MSFT pay for NOK?; that is the long term umbrella under the stock price.
    2 Oct 2012, 01:15 PM Reply Like
  • css1971
    , contributor
    Comments (871) | Send Message
    Microsoft got Nokia to make windows phones for nothing. It cost them a billion maybe. Windows Phone is not yet by *any* stretch of the imagination, a successful product. Nokia were shipping *30* million Symbian smart phones per quarter before Elop came on board and destroyed their market. Last count they were shipping *4* million windows phones.


    So why would they take on that risk by buying the company? I'm pretty sure the only reason MSFT produced a tablet is nobody else was going to do it for them. They might do a phone themselves if Nokia abandons a sinking Windows Phone. The next 6 months are crucial both for Nokia and for Microsoft.


    Now, Nokia have done the business, the 920 is as good as a current generation smart phone gets by all accounts it's going to be the best thing on the market by a wide margin, so it's up to Microsoft to produce the goods.
    2 Oct 2012, 01:30 PM Reply Like
  • Nokiees friend
    , contributor
    Comments (7) | Send Message
    where are the commercial's about this phone, and advertiseing, I certainly want the phone, I saw it at AT&T the other day,, it definately looks good in my hand, when I checked my self in the mirror with it up to my ear, I looked like a Rock Star.
    2 Oct 2012, 09:55 PM Reply Like
  • Financehulligan
    , contributor
    Comments (1056) | Send Message
    Nagging and made-up!


    It´s time to sell Apple, short Apple and buy Nokia.


    The Apple share is bear. The Nokia share is bull.

    2 Oct 2012, 01:19 PM Reply Like
  • Origa
    , contributor
    Comments (623) | Send Message
    This is purely a bad written bull article that fails to convince and looks like bear speculation by such a poorly argument writing that it creates more frustration than clarity.


    But if Microsoft buys Nokia and divest NSN out, then they would have a huge company to do what?


    Factories, Nokia have state of the art and they will be building Microsoft products to Microsoft's retail stores. There are cheaper alternatives to this, so it does not make sense with a buyout.


    The IPR, is leverage against Apple/Android and plenty of cash income. That could be 1 Billion Dollar or more annually. Compared to a perhaps 20 Billion dollar Buyout.
    No, not likely a 20 year return on investment is not prudent.


    Is Microsoft going to start building a company size and type like Foxconn and then be a player in the regular industry?
    No, not likely.


    No I cannot see any benefit, other than Nokia will benefit from orders from Microsoft. Nokia may be building a high end Microsoft smartphone and tablet, but a buy out, no, not likely.


    Microsoft have included HTC in their big launch, and the close integration that Elop has been saying loudly and clearly is confusing everybody. Steve Ballmer does not seems to bite, but his real ability is in financing, and other more experienced investors simply must analyze this a lot more to look into what he really have been saying.


    Some things that could indicate a buy out.
    1. What did Microsoft hide with last quarters loss?
    2. What have happened before when Steve Ballmer said "One thing at a time"
    3. The Skype deal vs. NSN in Microsoft´s hands vs. the competition.
    4. What legacy would Steve Ballmer put Microsoft in the day he leaves.




    2 Oct 2012, 01:33 PM Reply Like
  • Leont68
    , contributor
    Comments (1421) | Send Message
    I would not mind a Surface phone in 2013. I would still buy the nokia 920 in the mean time though.
    2 Oct 2012, 03:16 PM Reply Like
  • techy46
    , contributor
    Comments (12646) | Send Message
    There's lots of anti-Wintel and Nokia rumors floating around since Apple's iPhone 5 has had some issues to say the least.


    1) Windows 8 Software is buggy says Intel
    2) Intel Z2760 power management is buggy says Bloomberg
    3) Microsoft's being sued over Kinect violating 3rd party patent
    4) Nokia's cutiing their dividend
    5) Microsoft's making their own smart phone
    6) N okia lumia 920 is being priced too high


    which all come out because IPhone 5 maps stink, aluminum case scratches easy, WiFi has distance over 20 ft issues, camera produces purple haze from light sources, light leaks into case and the device feels too light and skinny.
    2 Oct 2012, 03:54 PM Reply Like
  • berylrb
    , contributor
    Comments (2384) | Send Message
    validity notwithstanding, what would the underlining purpose be? why drag both iOS and WP8 down, to shine a light on Samsung? that doesn't make sense either.


    it's like someone has a burr up their hiney about non-Android smartphone stocks.
    2 Oct 2012, 08:25 PM Reply Like
  • westkite
    , contributor
    Comments (202) | Send Message
    Thank you for driving up the stock yesterday. Made a hefty return today, of course, by shorting it. And that's not all, if M$ does make phones, bye bye Nokia since Nokia will just be another third party manufacturer. At that time, down with Nokia finally. Ha ha, news keeps on getting better.
    2 Oct 2012, 04:04 PM Reply Like
  • css1971
    , contributor
    Comments (871) | Send Message
    You're absolutely right. If MS make a WP8 device, Nokia will have to jump ship. Competing against MS is not feasible. Fortunately Nokia have plenty of experience dealing with multiple operating systems.
    2 Oct 2012, 04:17 PM Reply Like
  • westkite
    , contributor
    Comments (202) | Send Message
    By then it will be too late. They are going to run of cash, and M$ is not going to fund them $1billion per year.
    2 Oct 2012, 04:40 PM Reply Like
  • Leont68
    , contributor
    Comments (1421) | Send Message
    nothing wrong with making a profit westkite. power to you.
    2 Oct 2012, 04:06 PM Reply Like
  • westkite
    , contributor
    Comments (202) | Send Message
    Picture this. In the middle of coliseum, there stands a thousands of dogs all lined up and bent over. Suddenly, a row of horses approach and get on the dogs' backs. Waving back and force, the horses gasp for air as the dogs scream for savior. As 8 to 9 streams of light flash from the sky, dogs cheer, thinking that savior has arrived. But the lights disappear as flimsy candle light would in the middle of a galaxy storm. Some dogs accept the fate and start enjoying their situation. Some dogs scream and cry for help. Ms. E appears behind them, whipping the horses faster and faster. The horses appear content, but unable to stop, for they have insatiable appetite for dogs. The dogs howl in pain and in enjoyment.
    2 Oct 2012, 04:25 PM Reply Like
  • Abu Bakr Hussain
    , contributor
    Comments (714) | Send Message
    Further rumour confirmation
    2 Oct 2012, 04:27 PM Reply Like
  • Origa
    , contributor
    Comments (623) | Send Message
    I Believe nokia new about it, that could be the case why elop was not in a good mood that day of presentation.


    Nokia should continue with wph 8, and produce an even higher quality phone than Microsoft's new partner, htc.


    Besides how can Microsoft have a better phone, they can up the specs, but they cannot go with pureview. Nokia would still have an upper hand in tech and perhaps some developments inside Nokia are amazing. Remember pureview, no one was talking about it, before it actually was released.
    Nokia could release a series 40 phone that is slimmer than the best chinese phone and 3g to its asha line and sell those in huge numbers.
    2 Oct 2012, 05:03 PM Reply Like
  • Abrane
    , contributor
    Comments (59) | Send Message
    It makes no sense for MSFT to compete when it doesn't have the patent coverage to create a truly revolutionary phone, least not yet. .


    Either MSFT is truly intelligent and covered their butts when it comes down to lawsuits, or have somehow worked out a deal to use someone else's patents... I can't see this happening.


    What I do see is another sony ericson, but hopefully not the failure.
    2 Oct 2012, 05:11 PM Reply Like
  • Nokiees friend
    , contributor
    Comments (7) | Send Message
    Nokia has made several good decisions lately, ones that mean profit for the company, I dont think Nokia is totally reliant on Microsoft for their comeback. Seem's like more companies are in need of Nokia.


    But most of this isn't even noticed or talked about in the news, if given a chance to suceed, Nokia may just do that, THE LITTLE ENGINE THAT COULD, comes to mind.
    2 Oct 2012, 10:03 PM Reply Like
  • pureview8
    , contributor
    Comments (226) | Send Message
    Elop just said in an interview at AllthingsD that he has no indications Microsoft is building their own phone.


    And if MSFT does foolishly proceed with a Surface phone, I would interpret it as a declaration of war against Nokia. Nokia must respond decisively even if the Surface phone is nothing more than a reincarnation of Microsoft's disastrous Kin.


    Some options for a Nokia response could be:


    1. Sue other WP8 vendors and get their phones banned.


    2. Run ads against the Surface phone and destroy it right out the gate.


    3. Team up with RIM to produce BB10 devices.


    4. Bring the Lumia line to Android.


    5. Go nuclear. Put the entire company up for sale. Microsoft could bid to drive up the price, but Nokia would be sold to someone other than Microsoft. If Apple or Google wins control of Nokia, they can cement their dominance in mobile for the next 30 years and lock Microsoft out of mobile permanently.


    Option #1 could be taken preemptively right now. Have the lawsuits ready to go. Activate them unless Microsoft kills the Surface phone project.
    2 Oct 2012, 10:46 PM Reply Like
  • anil92691
    , contributor
    Comments (827) | Send Message
    Too many rumors and reactions to rumors. Everyone has announced for years now that Microsoft is dead and its revenues keep increasing and profits keep growing. Microsoft has already paid back its shareholders over 40 billion dollars....Google zero...and Apple has just started.


    Actually Microsoft should make its own devices and allow softwares bought from its web stores to work on its devices. This is one way to get around all the monopoly claims that don't seem to impact Apple and Google.


    Microsoft is a mature company and will continue to grow at a 10% rate (and more when it releases all the new products in the next fiscal year). There is still time to buy stock.
    2 Oct 2012, 11:31 PM Reply Like
  • wpdsr001
    , contributor
    Comments (67) | Send Message
    That's forward thinking. What could be greater for the cell phone consumer than to have several different cell phones brands operating on the same Windows 8 platform and thus have more cell phone choices. Microsoft would not be a threat to the other cell phone partners and each would compliment each other. Android and Apple would now have some competition.
    3 Oct 2012, 04:50 PM Reply Like
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