Nokia bought by Microsoft predicted by Pragmatic in August 2012

In a post in August 2012 I suggested that Elop had joined Nokia to build up the MS windows world ready to sell the company to Microsoft. Lo and behold this came to fruition today.


NOKIA has decided to live and die by Microsoft windows phone. I think a good decision although they missed the main point. As a superb phone maker they should have chosen Android and differentiated by better products. Instead they thought the OS was all that mattered. I think the ex Microsoft new CEO long term game plan is to sell the company to Microsoft and he may succeed. They produced the Lumia a world beating phone but then MS (as it has so many times) cut the ground out from their feet by announcing that Windows 8 would not support the Lumia. Huge bad press. But all Nokia needs is a winning phone. It has the logistics and sales systems in place to go to market as its still substantial sales shows. A big change is in the air in September as they announce new products jointly with Microsoft. Its make or break time for both of them.
RIM is banking everything on the long gestating new operating system developed in house. I think its a bit late for that. The new OS will have no APPS, it might be great but people want APPS. Also they have a long period of proving this new OS and business have started the long slow shift to Android and Apple. I suspect trouble ahead frankly. Its a shame but its clear.

Where to Invest?
I think Nokia. Windows phone is gradually getting converts, and Windows 8 tight integration across platforms will help. Nokia is a good company with good sales channels. One good phone at the right price could revive their fortunes. Its high risk, but if anywhere can show double your money then this is the place.