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Nokia's Still Losing While Windows Gain

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Last week Nokia (NOK) was one of  a handful of picks that I predicted would see a decline and fall below $3.55. We were right as the shares ended the week at $3.44. We talked about the pressure that the company's new line of Lumia phones continues to see from not only Apple (AAPL) but also from Google's (GOOG) Android devices. 

Given the fact that Microsoft (MSFT) has gained market share this recent quarter, I expect that to be a positive for Nokia and its investors. But that does not mean that the shares won't remain under pressure for the long terms.

While Nokia still owns more than 14% of the global phone market, the company's market position has been dwindling over the past couple of years. And I just don't believe that there will be sustainable interest in the Windows platform to make a meaningful dent against Apple's iPhone or even BlackBerry (BBRY).

I've made this argument before and I'll say it here again, it's time for Nokia to consider switching portion of its phones to Android. Although many will still disagree, I just don't see Windows as a viable long-term platform. While Nokia's hardware has helped Microsoft gain incremental market share in the mobile operating system race, what exactly has it meant for Nokia in general?

Nokia's stock is down 13% on the year, while shares of its mobile partner Microsoft are up 32%. How is it that Nokia investors are unable to see that this relationship is one-sided. What are the long-term prospects beyond furthering Microsoft's OS growth? The unfortunate reality about all of this is that Nokia makes decent phones. For Nokia to gain more traction, the company need to hang-up on Windows Mobile.

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Stock Tickers: NOK AAPL GOOG MSFT BBRY Author Disclosure: At the time of publication Richard held shares of Apple and had no positions in any of the other stocks mentioned in this article.
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