Seeking Alpha

"Microsoft may broaden its strategy to sell other mobile devices under its own brand, including...

"Microsoft may broaden its strategy to sell other mobile devices under its own brand, including smartphones." Thus writes Nokia (NOK) in its 2012 20-F - ZDNet observes the remarks are the first time Nokia discussed a possible Microsoft (MSFT) smartphone in a regulatory filing. Bloomberg and The Verge reported last fall Microsoft views a home-grown smartphone as a backup plan if WP8 launches disappoint. Digitimes, very much hit-and-miss when it comes to smartphone launch rumors, reported a Microsoft smartphone will arrive in mid-2013. (previous)
Comments (6)
  • A Microsoft phone is about as much of a threat to Nokia as a Motorola phone.

     

    The problem with breaking out into new areas for anyone is that they have no practical experience in the game. Take Sears for example, run by a hedge fund trader with no experience in retail. He refused to make the reinvestment in floor improvement and up keep that every other retailer makes and now he's facing bankruptcy. Google's foray into phones has done nothing to raise the brand from the ashes. I know people have said that Motorola was bought only for the patents but I don't believe that. Apple is the model of offense that the other teams are trying to copy but those other teams are walking roads they don't know. They can do it if they're not too arrogant but there will be a learning curve. That's why a phone from Microsoft won't in any way threaten Nokia. Not for a few years at least.

     

    Long Nokia
    11 Mar 2013, 12:30 PM Reply Like
  • it should be every bit as popular as the kin tablet aka surface rt
    11 Mar 2013, 01:39 PM Reply Like
  • Caveat Emptor. Buying a rumor? Let's create a rumor. Let's create weight to comments that seem intended for weightlessness. A company's due diligence, especially in documents intended for global distribution, requires comments about the SWOT of possibilities and strategies as it considers its path forward. I see the Nokia comment little more than a placebo for consumption by competitors, allies and fear-driven investors.

     

    I suppose comments about the quality of a product or the value of an alliance matter but relative to this report, these comments are a digression rather than critical path investment thinking.
    11 Mar 2013, 02:08 PM Reply Like
  • As Wiredless suggests, it would seem very unlikely MSFT would be foolish enough to wade into the wireless phone mess by trying to invent a new phone from scratch. Boggles the mind. If MSFT wanted to do that with some realistic chance of success, the simplest thing would be to buy Nokia lock,stock and barrel as they say, and move the HQ to California or Seattle over a 5-10 year period. Presto! Instant global phone company, with no annoying operating system costs per the present arrangement with Nokia. Before Nokia actually went belly up, should that occur, I would certainly step in if I were Steve Balmer and do exactly that.
    11 Mar 2013, 03:38 PM Reply Like
  • I like MS software products a lot. I will be buying a tablet with full W8 on it in the coming months but it will not be a Surface.

     

    I understand why they brought out the Surface. Quite simply they looked at Apple's profits and wanted some. They covered that up with BS about producing a "template device because manufacturers aren't stepping up to the plate" but their Surface offerings are below average compared to what some of the dedicated hardware manufacturers are doing.

     

    I doubt MS will make the same mistake again with phones.

     

    Manufacturing your own hardware is a very expensive business. The XBox was eventually a financial success but mostly on the back of software. That doesn't apply to phones where MS already own the store for WP apps with real phone manufacturers producing good products which MS would struggle to match.
    12 Mar 2013, 05:28 AM Reply Like
  • What`s the problem with a MS Surface phone ? Why the fear in the market? Competition is always good for business.
    It would stimulate the market for Nokia. Nokia can deliver great quality smartphones from Highest End to Low End, there are no real competitors out there.

     

    http://bit.ly/Y6FEoz

     

    Nokia (NOK) CEO Stephen Elop might have allied his company with Microsoft (MSFT) to deliver some of the best Windows Phone devices, but he also believes that a Surface-branded smartphone would give the mobile operating system a big boost. Per The Verge, Elop said in Nokia’s latest investor call this week that a Microsoft-built smartphone would certainly be “a stimulant to the ecosystem.” And although HTC and Samsung are its competitors, Elop said he welcomes any company that “helps spur the ecosystem on.” Earlier this month, BGR exclusively reported that Microsoft has indeed created a Surface smartphone that could launch in the coming months.
    12 Mar 2013, 06:00 AM Reply Like
DJIA (DIA) S&P 500 (SPY)