With their latest interim report available today, Finnish communications giant Nokia has laid out its competitive strategy for all to see. Although the results show a profit for investors, the company has announced it will not pay a stock dividend for the first time in over 100 years. This disclosure could possibly hurt the company if it's bet on Microsoft doesn't pay off with increased consumer market share.
Historically well run and profitable, Nokia's news appears to come at a time where consumer tastes are changing. Nokia is embracing their relationship with Microsoft and have left the Symbian OS behind in an attempt to bring their low-cost strategy to worldwide markets. Unlike Apple's iPhone, the Windows Phone OS is licensed to phone manufacturers giving consumers more than one choice.
Nokia began manufacturing paper in 1865 and eventually became one of the leading electronics and communications manufacturers for public safety and consumers worldwide. Demand for electronics and the company's fortunes both increased over the 20th century leading to the iconic Nokia ringtone and Snake game being remembered by consumers and professionals alike.
While they are still actively working with cellular networking projects, Nokia's handheld side is dependent on the market's continued reaction to the Lumia Windows Phone 8. Even with features like Near Field Communication (NFC) to answer Android and a front-facing camera for the FaceTime crowd, it is still important for Nokia's strategy that their phones are considered serious competitors with unique technology.
Nokia has trimmed support staff and liquidated some assets in order to focus on the worldwide cellular market. With Microsoft as a partner, Nokia appears to have software overhead under control. There are whispers of some of Nokia's best tech being tapped this year and it wouldn't hurt to have another major phone producer in Europe back up and running. This may be the time for enterprise to consider Nokia.
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