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Efforts to get Nokia&8217;re hoping efforts continue speedily, as this could be just the excuse we need to give in and grab an N9 ourselves. ...
Easy come, easy go.
On Monday, Nokia shares spiked 17 cents, or 5.5%, as investors speculated that the struggling handset maker might benefit from Friday’s news that a U.S. jury had found Samsung to be in violation of a variety of Apple patents. The thinking apparently was that anything that could lead Uncle Sam to barring the sale of at least some of Samsung’s phones in the U.S. could leave more room for Nokia’s push into the smartphone market with phones based on Windows Phone software.
But the era of good feeling didn’t last very long.
On Tuesday, as I write this, Nokia shares are down 17 cents, giving back every single penny they gained on Monday, and I think for good reason.
For starters, the ruling in the case was largely focused on handset design elements, as opposed to being an indictment of the Android OS specifically. That would suggest Samsung might be able to design around the issues that were raised in the court case. Moreover, while I think there is an argument that the ruling is good news for Microsoft – handset OEMs looking for alternatives don’t have many other choices if they want to move away from Android – that does not necessarily mean a big boost for Nokia.
Nokia so far has been the leading provider of devices based on Windows Phone 7, and it will likely maintain its position as a key player when it comes to Windows Phone 8. (The two companies have a launch event set for early September to show off some new devices.) But this is no exclusive relationship: Microsoft is going to be looking to press its advantage in the wake of the Samsung/Apple case, stressing the legal risks attached to Android, and looking for opportunities to sign up as many licensees for the cutting edge version of Windows Phones as it can. The prospect of Samsung, LG, HTC and a host of other OEMs all jumping aggressively into the Windows Phone market in competition with Nokia would have some benefits to the company; there would likely be an expanded range of apps, for instance, if the platform gained more share. But it would also mean more intense competition for Nokia on features, design – and price.
Nokia made the decision to bet the company on Windows Phone in part to avoid the frenzied scrum that has emerged in the Android market, and I think they chose wisely. But a flood of new Microsoft licensees into the Windows Phone market would put Nokia in basically the same position, trying to compete with the Asia handset giants in a commodtizing market.
For Nokia, in short, the Samsung ruling is unlikely to be the panacea that some had hoped.