Nokia Corporation (ADR) (NYSE:NOK) sold its handset division to Microsoft recently and the Seattle Software giant promptly laid off thousands of Nokia workers and replaced the brand name on the devices. This was after a long relationship between the two companies became strained. Up until that point, Nokia was one off the staunchest supporters of Microsoft’s Windows OS for mobile phones. But the last laugh maybe Nokia’s as the company is in beta-stage testing of an Android-based OS for smart phones.
Converting Core OS
Nokia just released a published benchmark test that verifies they are working to produce a smart phone that runs on the Android frame, which is a big turnaround from past efforts where the company stayed strictly within the frame of the Windows Smartphone OS. Nokia has already showcased a tablet, the N1 that runs on the Android framework. Nokia was the last major producer of mobile devices to stand behind the Windows Phone OS, but had problems finding any measurable success through its efforts. Windows OS based phones consist of only 3 percent of the overall smartphone marketplace. In comparison, the Android frame controls about 77 percent of the smartphone market worldwide.
Change In Leadership
Up until the handset division purchase, Nokia Corporation (ADR) (NYSE:NOK) stood by the Windows OS mostly under the coaxing of then CEO, Stephen Elop. ButElop went to Microsoft along with the handset division and the company saw this as an opportunity to attach itself to the much more popular mobile OS frame. The new CEO, Rajeev Suri, is much more open to the Android switch. Nokia’s market share and revenues have consistently declined under the Window’s OS and in an effort to regain market share, he has decided to align his allegiance with the Android system. Microsoft tried releasing an Android-based phone but went right back to their own OS on future models.
The stock is trading in a sideways pattern right now and needs to move back above its MA at $7.80 soon. It has some support around $7.60 but if that level is violated it will be a serious technical breech.