On the other hand, Microsoft doesn't want to acquire Nokia. Buying a large European company such as Nokia could be a huge nightmare. Thousands of people may need to be fired, unions would have to be negotiated, the government of Finland could declare war on the city of Seattle, or worse. The whole thing could be a mess dominated with endless EU bureaucrats, lawyers and strife.
This is why Microsoft has never denied the suggestion that it will make its own smartphone. One year ago, Microsoft stunned the world when it announced it was building its own PC -- the Surface. If you don't believe Microsoft is hard at work engineering its own phone, you're most likely naive.
Think about it from Microsoft's perspective: Everyone but Nokia has effectively abandoned Windows Phone. If Nokia shifts direction to Android or something else, or if Nokia gets acquired by someone with similar thoughts, Windows Phone is over. Good-night!
That is, unless you as Microsoft do what Apple and BlackBerry do -- and for that matter Google (GOOG) now too, effectively -- and go vertical: make your own line of phones. Surface PCs; Surface smartphones -- who cares?Microsoft's other option: BlackBerry Windows Phone and BlackBerry now each have around 3% to 5% of the smartphone market, far behind Android (70%) and Apple's iOS (21%). It's almost inevitable that these two forces -- BlackBerry and Windows Phone -- must merge in order to have a viable Number 3 player in the portable computing market. In other words, BlackBerry must join either of two camps: Microsoft or Nokia. Alternatively, there would have to be a friendly "let's join together all three of us" event, which seems almost impossibly difficult to work out given valuations, politics, unions and worse. (AAPL).
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV