Struggling handset manufacturer Nokia Corporation (NOK) is preparing to launch a Lumia phone, pre-loaded with its PureView pro imaging technology. This is believed to be an attempt by the company to integrate and launch the high resolution camera in its Lumia range of Windows phones.
Previously, Nokia Corp. had introduced its first PureView technology embedded phones with the launch of Nokia 808 PureView. This imaging technology is a combination of many pixels into one perfect pixel and provides a digital camera like experience. The phone includes a large and super high resolution 41 mega pixel camera coupled with a high resolution Carl Zeiss lens.
Although Nokia 808 PureView was the first phone to include this high a resolution camera, the downside was that it launched on its outdated Symbian operating system. Adding this innovative technology to the Windows-powered Lumia range of devices will enable the company to launch a phone featuring a high-end camera with an enlarged display, thus enhancing the true qualities of the PureView technology.
Presently, Nokia Corporation is in dire straits, losing on every front. It remains severely challenged owing to stiff competition, primarily from Apple Inc’s. (AAPL) iPhone, and an array of other smartphone manufacturers using Google Inc’s. (GOOG) Android platform.
In an effort to improve its falling smartphone market share, the company teamed up with Microsoft Corporation (MSFT) to develop Windows-based smartphones. However, the company sold only 12 million handsets in the first quarter compared to Apple’s 35 million and Samsung’s 44.5 million.
To improve acceptability the company is planning to include the new technology, which we believe is a value add, to its Lumia range of smartphones. Additionally, the company’s sales can increase considerably as it plans to offer the Windows-based phones from two of the largest U.S. carriers Verizon Communication Inc. (VZ) and Sprint-Nextel Corp. (S).
The current Zacks Consensus Estimate for Nokia Corporation is pegged at a loss of 10 cents for the second quarter with a growth rate estimate of (215.00%). For 2012 and the Zacks Consensus Estimates stands at a loss of 29 cents with a growth rate of (176.64%) but for 2013 the Zacks Consensus Estimates stands at 3 cents with a growth rate of 111.73%, respectively.
Recommendation:
Nokia Corporation has a Zacks #3 Rank, implying a short-term Hold rating.
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