Boston, MA 10/07/2013 (wallstreetpr) – Nokia Corporation (ADR)(NYSE:NOK) is a towering name in the mobile business industry. And Nokia phones might not a forgotten thing after all. According to a recent deal involving the company and software giant Microsoft, the company has agreed to allow now its smarphone business run by Microsoft in deal that runs till 2015.
After 2015, NOK will regain its brand name “Nokia” to use, once again, in mobile devices. However, Microsoft will too continue with the “Lumia” and “Asha” plus other Nokia phone features in its smart mobile devices.
Although the Finnish mobile handset maker has seen a lot of trouble in business lately, analysts say all is not lost. After 2015 ends, the company has several options to exploits its many opportunities in the mobile business industry. The three options which analysts lay for NOK include reselling third-party products or building itself into a new business. In the second option NOK could also sell its brand to Microsoft in totality. The third option, NOK could license out its brand to another device manufacturer.
In view of the foregoing, NOK has a lucrative opportunity in giving out its license. In the license deal, analysts say, the company could fetch up to $406.71 million in profits. For a Chinese company seeking to penetrate the U.S market, holding a NOK license could be like a deal made in heaven.
Unlike BlackBerry that is struggling to get a good buy deal, NOK if put up for sale would obviously attract several Chinese buyers. The company’s reputation in mobile handset making speaks for itself. And the company offers wonderful opportunities for a buyer seeking to break new grounds faster and easily.
It therefore means that if it’s not NOK carrying the covered “Nokia” brand name of its devices, the brand would still linger around but with devices from another manufacturer. In other words, “Nokia” is not becoming a thing of the past.
