Tomahawk, WI 03/04/2014 (Basicsmedia) – Some of the recent decisions taken by Nokia Corporation (ADR) (NYSE:NOK) leave a lot of questions unanswered. Market watchers were hoping that the company could throw some light on the issues, but the company has chosen otherwise.

Nok Is Trading In Range Bound Area

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Unanswered Questions:

The most important question relates to the latest mobile hand sets being launched by Nokia Corporation (ADR) (NYSE:NOK). As the handset business is being acquired by Microsoft Corporation (NASDAQ:MSFT) and also considering that Nokia has always relied on Windows to power its smartphones, it was assumed that the new range would also operate on the Windows platform. After a long time Nokia is coming out aggressively in the handset market with three product launches. The smartphones are also said to be priced aggressively and targeted at the price sensitive Asian markets. The decision of Nokia to use the Android platform has surprised many. Microsoft has refused to comment on the issue. The acquisition is expected to complete by year end. Why would Nokia and its team of management take such a decision?

If the models gain a good following, Microsoft Corporation (NASDAQ:MSFT) will find it hard to discontinue the models. However, if they fail, the issue may resolve itself, at least on the surface. It has always been assumed that the acquisition is aimed at sustaining Windows as one of the operating system for the mobile platform and also to enable Microsoft to gain a foothold in the lucrative handset business.

The After This What Question:

What will Nokia Corporation (ADR) (NYSE:NOK) do after it loses the handset business? The company has other lines of business. The company is focusing on cost reduction. There are several product gaps in the remaining businesses but as they will be the breadwinners for Nokia, it will have to take corrective measures. Acquisitions are currently being ruled out. Analysts think Nokia will enter into partnerships to tide over the gaps. At least till such time, it can establish its own line of products.

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