Citi Analyst Says Nokia-Microsoft Partnership Will Help RIM

Nokia Windows Mobile

The dust is still settling on Nokia’s huge announcement to drop their current OS efforts and focus on developing Windows Phone 7 devices. There have been some interesting spats/snubs between the Nokia and RIM CEO’s but that is just part of the mobile game. The interesting part is how analysts are taking this information. The latest report I read about had Citi analyst Jim Suva (via Business Insider) stating that carriers are going to drop Nokia like a hot potato in favor of RIM along with Apple and Google at least in the short term.

What Jim is saying kind of makes sense. Here is his full explanation:

We are upgrading Research In Motion (RIMM) to Buy from Sell. Carrier "Promotion Commotion" should start to flip to benefit Research In Motion at the expense of Sell-rated Nokia (CIRA analyst Zahid Hussein). Nokia is completely changing its strategy to now embrace the Microsoft mobile operating system thereby creating a multi quarter gap in Nokia products & carrier promotion support. We met with several international carriers at Mobile World Congress in Barcelona Spain this week who commented on their forthcoming shift to promote other handset OEMs (Android, Apple & RIMM) until Nokia’s product strategy is more realizable. Nokia currently has 35% global market share vs. 23% Samsung, 9% LG, 5% Apple, 4% RIMM, 3% Motorola, 3% Sony Ericsson, 3% HTC (4Q’10).

The reasoning is an interesting twist. RIM has been making a big push internationally where Nokia has the largest footprint. With Nokia giving up on their current platforms and the devices running them it will be awhile until Nokia has something competitive to offer carriers. I guess we will all just have to wait to see how the cards fall…

11 total comments on this postSubmit your comment!
  1. I think its pretty true.. Microsoft’s os is pretty horrid..

  2. Nokia might be big in cellular phones globally overall, but for Smartphones, I don’t know anyone running out to get a Nokia, nor anyone running out to get a Windows phone. Again, two fails don’t make a win :) I do see people switching from iPhone to OS 6 BBs :)

  3. I can definitely see carriers not caring much about what Nokia is going to have to offer. RIM is going to be the platform that everyone is going to be talking about in the next couple of years. Nokia may have gone in the wrong direction on the road to their salvation.

  4. Nokia may have missed the mark on this partnership. If it benefits RIM, that’s great. I do think Windows Phone 7 may attract some users, but probably not the ones who would otherwise be looking at Blackberry.

  5. And since its all speculation, analyst Shaw Wu will be releasing a statement later on shooting down everything positive about RIM and once again claiming that the Playbook’s battery will last an hour…

  6. Just look at the picture above, ugly phone, ugly OS. That’s what I’m looking forward too?

  7. i realy don’t know why Symbian wont invest in some proper upgrades to their OS, i loved the OS on the Sony Ericsson Vivaz… shame..

  8. i think with this that Nokia will fall off the world #1 position within 2 fiscal years.

    WP7 is crap and well i guess kick backs from MS are greater than the product they will now be selling.

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