Will Nokia’s Cheap Strategy Find it a Niche?


Nokia (NYSE:NOK) has been struggling with smartphones, and Microsoft (NASDAQ:MSFT) has shared its fate in that market almost directly with Finnish phone maker. They have had steep competition in the high-end smartphone market, but Nokia has some schemes that may find it a niche.

For one, Nokia has already been playing the field a lot differently from many other smartphone makers. While a majority of big-name smartphone makers have taken advantage of the open-source operating system created by Google (NASDAQ:GOOG) in Android, Nokia decided to go exclusively with Microsoft’s Windows Phone operating system. Even though some other original equipment manufacturers develop smartphones for both Android and Windows Phone, not many would choose the less-popular Windows Phone exclusively.

That said, Nokia has to contend with not only the popularity of other smartphone brands — like Samsung (SSNLF.PK) and Apple (NASDAQ:AAPL) — but also with more popular smartphone operating systems in iOS and Android. That puts it in a tough spot that it has to be clever to escape.