Struggling handset developer, Nokia Corporation (NOK), is offering free loans to small and medium businesses (SMBs) in the U.K., to drive Windows smartphone sales. The company will provide Windows smartphones for 30 days as a testing period to business enterprises that have at least 100 employees.
With this strategic move, Nokia is targeting businesses which operate on Microsoft systems with the aim of facilitating higher adoption of Windows smartphones. The company revealed that its U.K. B2B market share has expanded in the 5 -12% range last year.
However, stiff competition from office enterprise products offered by the likes of Apple Inc. (AAPL) and BlackBerry Ltd (BBRY) might offset the sales-driving initiatives. A major growth product for BlackBerry is its BlackBerry Enterprise Service 10 (BES10) solution. BES provides flexibility, scalability, high security and cost-effectiveness. At the end of third quarter 2014, more than 80,000 enterprises are using BES10 while over 30,000 BES10 servers have been deployed during the quarter.
Recently, Nokia reported its fourth-quarter results, where earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. Sales of the company’s flagship Lumia smartphone series, based on Windows Phone 8 operating system, declined to 8.2 million in the fourth quarter from 8.8 million in the preceding quarter.
Nokia has decided to sell its Device business to Microsoft Corp. (MSFT) for $7.2 billion. The deal is expected to close by the end of the first quarter of 2014. As a result, Nokia reported its handset business as discontinued operation in the fourth quarter of 2013.
Nokia currently has a Zacks Rank #2 (Buy).
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