Friday, March 25, 2011

Will Nokia (NOK) Surprise with Low Expectations?

Once the deal with Microsoft (NASDAQ:MSFT) was announced by Nokia to use Windows Phone 7 as its smartphone platform, they quickly went out of favor with investors, who had for some reason hoped they would have chosen Google's (NASDAQ:GOOG) Android as the platform of choice.

As expected, the shares of the company were punished, with short- and long-term expectations very low.

That may have set the company up for success for the long haul, as the quality of the phones they make hasn't changed and the Windows Phone 7 platform has been highly thought of by those trying it out.

And in the North American and most other mature markets, Nokia has nowhere to go but up with their smartphone sales, and any percentage gain of market share will help the company, while they continue to serve emerging markets with less robust, but not less important, phones.

Even if investors don't think Nokia will turnaround any time soon, they can enjoy the dividend yield of 5.4 percent while they wait.

Taking into account the love affair many users have with Apple (NASDAQ:AAPL) and Google in this sector, Nokia could be positioned to surprise, and it's highly probable that they do as the attention remains on these two companies, and to a lesser extent on RIM (NASDAQ:RIMM) and Motorola Mobility (NYSE:MMI).

Nokia closed Thursday at $8.45, gaining $0.07, or 0.84 percent.

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