Linked by Thom Holwerda on Thu 20th Jun 2013 18:29 UTC, submitted by MOS6510
PDAs, Cellphones, Wireless So, The Wall Street Journal is reporting that Microsoft was very close to take over Nokia, but that the talks eventually broke down, probably beyond repair - at least for now. The reasons the talks broke down illustrate something that I have repeatedly tried to make clear for a long time now: Nokia isn't doing well.
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Comment by Nelson
by Nelson on Thu 20th Jun 2013 23:53 UTC
Nelson
Member since:
2005-11-29

I don't think Nokia should sell to Microsoft, they are well on their way to a recovery.

This is completely aside from Microsoft's ulterior motive of advancing Windows Phone -- Nokia is doing a great job of conserving cash and strengthening their financial position.

None of these require necessarily a Windows Phone smash hit, just to sell enough to be a player.

Nokia has not yet issued a warning on their upcoming earnings, which indicates to me that their Lumia sales have indeed increased for Q2 at least as well as they said they would during their guidance.

If true, this is encouraging news. They need to keep it up for Q3, and they're home free into the Holiday season which will naturally lift their sales.

Basically if Nokia can go to selling 15-20 million Windows Phones a quarter by Q1, they'll be easily doing in a month what used to take them a year to pull off.

Its also not that unrealistic given the sequential growth they've shown for a few quarters.

I'm interested in seeing how Asha sales do in Q2. I want to know if they just reacted negatively to seasonality or if the sales really are having problems.

Beyond Lumia sales, their ability to divest more from NSN will be key to strengthening their cash position.

NSN has very, very nice parts of it, and other not so nice parts. Sell off the useless parts and keep the good parts and they will be golden. In fact, I expect them to do this.

All of this Nokia stuff aside, Microsoft will not launch their own phone this year. I'll go on the record predicting that this will certainly not happen.

I think HTC's One sales are softer than people think. Microsoft has an opportunity to poach HTC with enough money. If they can get solid commitments from HTC to go along side Nokia's it will benefit them both.

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