Business Section: Investing Ideas
Entering the low-priced phone segment will be low-risk for Microsoft, since it is in partnership with a phone maker great at making inexpensive phones. Microsoft recently traded with a P/E of around 15.
Nokia will not be harmed, either. Asha is a separate line that diversifies Nokia’s reliance from Microsoft. Over time, Nokia could continue to focus on the mid- to high-end Lumia devices. These models offer a richer gross margin. Nokia’s market capitalization was recently around $15.6 billion, nearly double the level from December.
Qualcomm is a winner from Microsoft’s partnership. This is why Qualcomm shares are near a 52-week high, trading recently above $66.Written by KAPITALL Contributor Chris Lau