Nokia Ready For Rapid Innovation Despite Lumia Loss
Chris Lau, Kapitall: Nokia is saying goodbye to the Lumia smartphone line, but they're already tweeting about what's next.
Nokia (NOK) shares are on a tear lately, largely because Microsoft (MSFT) is buying its handset division and signing a long term licensing agreement with the company. But there is still quite some time before the Lumia smartphone will be wholly run by Microsoft.
[Read more from Kapitall: Microsoft Follows Purchase of Nokia Smartphones with Lumia Price Cut]
In the interim, Nokia is continuing to demonstrate it has a rapid innovation cycle. There are hints the company will keep diversifying into 2014, when it is no longer in the handset business.
More to share
Nokia posted a teaser on its Twitter account, tweeting “At Nokia, we never stop innovating. More to share on October 22,” and included this image:
Even after successive releases of Lumia devices - from the budget Lumia 500 to the mid-range 700 series and all the way to the Lumia 1000 - Nokia is still promising to innovate further. And their product releases have helped solidify market share for the Windows Phone, including third place among mobile operating systems as of this past summer.
Room for growth
Nokia is already up significantly this year, but is there more room for upside?
Click on the interactive chart to see data over time. Sourced from Zacks Investment Research.
Contrary to a report from Reuters, Nokia could announce the Phablet, a Lumia 1520, at the October 22 event. It is also possible that an RT tablet could be announced. Either would be a good push for Microsoft’s mobile efforts. Competition is stiff. The tablet market is filled with devices costing less than $300. Any tablet announcement would benefit from Nokia releasing a device that is comparably low. Otherwise, the “innovation” might be met with weak sales.