Nokia and Microsoft announced an alliance last week that would incorporate Microsoft Office Mobile and Microsoft business software on Nokia’s Symbian smartphone devices. The alliance will help Nokia to make its smartphone offering more attractive, especially to business customers. Microsoft will benefit from Nokia’s success which is likely to come in part at the expense of Microsoft rivals Apple (iPhone) and Google (Andriod phone OS).
Mobile Phones constitute 87% of the $35.15 per share Trefis price estimate for Nokia. Our forecasts for Nokia’s market share assumes a decline from 46% to 40% within emerging markets and a slight increase from 28% to 31% in developed markets. Within both markets, Nokia’s smartphone offering has been under threat from new entrants such as the iPhone and Palm Pre. HTC, a Taiwan-based mobile phone manufacturer, makes smartphones that incorporate Google’s Android OS (e.g. HTC Dream phone) and is expected to take share within emerging markets.
Within Nokia’s content on our platform, you can see how improvement in Nokia’s Market Share in Emerging Markets and Market Share in Developed Markets due to a more attractive smartphone offering would impact Nokia’s stock.
