Nokia (NYSE:NOK) has not only had its shares battered by markets this week, having lost over 20% of its stock value in the past four days of trading, the company may also have had hopes of a future in the cell phone market smashed.
According to Nokia President and CEO Stephen Elop the company is at a “critical juncture,” and currently stands on a “bumping platform.” Nokia’s struggles come as the battle for dominance in the smartphone market has in the past few years turned into a three horse race, between Google’s (NASDAQ:GOOG) Android OS phones, Apple’s (NASDAQ:AAPL) iPhones, and Research In Motion’s (NASDAQ:RIMM) Blackberry phones, leaving companies such a Nokia high and dry.
The Finland-based cell phone company’s stock was slammed especially hard early this week following an announcement that the firm would not release revised projections of its QE2 earnings, after warning they would be “substantially lower” than current estimates. The next day rumors exploded through Twitter and onto the wider web that Microsoft (NASDAQ:MSFT) was in talks to buyout Nokia (NYSE:NOK), though these claims turned out to be false.
What is true though is that Nokia (NYSE:NOK) is in talks with Microsoft concerning transferring Nokia Symbian OS smart phones to Windows OS Mobile platforms in an effort to retain quickly fading market share. Microsoft needs all the help it can get, with Windows OS phones having dropped to 3.6% from 6.8% of global smart phone market share this quarter. Whether or not Nokia’s use of the Windows system will be enough to keep Microsoft (NASDAQ:MSFT) in the smart-phone game is doubtful, but what is more certain is that the tech giant will not bow out quickly. Nokia on the other-hand, may be headed to an early grave.