Windows Phone to Aid Nokia Recovery in 2012

January 9, 2012, By Sanjeev Ramachandran

Nokia has been the top handset seller for years. But yes, their smartphones and platforms did not quite work out the magic as expected.

But Nokia still has a shot at making it big this year, thanks to the Nokia-Microsoft to team up. According to Credit Suisse analyst, Kulbinder Garcha, Microsoft’s Windows Phone will be the linchpin to drive a recovery for Nokia throughout 2012.

A boost from Windows Phone will help Nokia hang onto a solid 13 percent of the smartphone market over the longer haul, says Garcha. Nokia’s smartphone market share had come down from 33 percent to just 14 percent last year.

Garcha asserts her forecast with three key points. One, the company’s initial Lumia phones are being priced aggressively and sensibly. Two, there seems to be a good support for the Windows Phone and Nokia team-up based on a recent survey.

And third, the quality of Windows Phone combined with Nokia’s brand, distribution channels, and scale will drive business. Credit Suisse’s recent survey found that 85 percent of the 27 key executives polled at major carriers feel the need for a third major platform behind Apple and Android.

And more than three quarters of them believe it will be Windows Phone/Nokia. Nokia and Microsoft will reportedly sink around $200 million to promote their new phone lineup.

But it might be worth a crossover point in Nokia’s smartphone business by this year’s third quarter when Windows Phone starts to outsell Symbian. It will not be an easy way out for Nokia though.

The Windows Phone 7 itself is nowhere near Android and iOS in the market, with over just one percent share. Also, Europe and North America should be the two focal areas where it needs to build customer support from scratch.

The Lumia 800 and 900 are both expected to make an appearance at CES in Las Vegas.

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