Are Nokia’s (NYSE:NOK) struggling Windows Phone-powered devices a sign that consumers are happy with the market dominance of Apple’s (NASDAQ:AAPL) iOS and Google’s (NASDAQ:GOOG) Android platforms? Needham & Company analyst Charlie Wolf downgraded Nokia shares from a “Buy” to a “Hold” rating, after a disappointing quarterly earnings report on Thursday, reports Barron’s.
Although Lumia sales actually grew 32 percent over the previous quarter, the average selling price dropped 18 percent. In his research report, Wolf noted that the falling sales price of Nokia’s Windows Phone-based Lumia smartphones seem to “raise the larger question of whether consumers are even interested in a viable third platform in the smartphone market.”
“The argument has been made ad nauseam that carriers would like to see a third major smartphone platform emerge to compete with the iPhone and Android. However, Nokia’s second quarter results raise the possibility that consumers are content with just two platforms. If so, this does not speak well for the Microsoft (NASDAQ:MSFT)/Nokia duo going forward,” wrote the analyst.