Nokia's future has looked brighter in recent months with strong sales of Asha phones around the world and more interest in the growing Lumia family here. But its long-term partnership with Microsoft could be under threat now that talks about an acquisition have broken down.
Talks Went Nowhere Fast
One of those good old "unnamed sources" has spilt the beans on talks between Microsoft and Nokia to move on from their technical partnership into a full-blown acquisition. Apparently at quite an advanced stage, Microsoft has reportedly ended the talks, with Nokia's positive spin on its recent sales figures not showing end results in its financials.
While Nokia has taken on the poster-boy role for Windows Phone 8, Samsung's own ATIV range and the likelihood of Microsoft's own products (similar to the Surface range) could see Nokia become less of a strategic requirement for the Seattle company.
Having pretty much bet the farm on Windows Phone, that leaves Nokia with few other options, expect possibly dumping WP8 and moving wholesale to Android, with own its shiny Nokia skin on top, no doubt.
A Huawei-an Vacation
That puts some light on a recent response to the usual buying chatter by Richard Yu, boss of Huawei's consumer business group "We are considering these sorts of acquisitions; maybe the combination has some synergies, but it depends on Nokia's willingness." Nokia's stock has been edging up in the last couple of weeks suggesting someone is betting on a bit of definitive news.
That comment has since been updated with a more stock "we are not actively in talks" response from the Chinese company, but with the speed things move in tech, that could change very quickly. Huawei is doing pretty well in the technology stakes having just introduced the world's thinnest smartphone, the P6.
Huawei has a pretty small market share among mobiles, but is a massive company with activity in many areas of IT and the budget to challenge the top five. If it does so by organic growth through the likes of the P6, or by picking up some of the industry's walking wounded and revitalizing them, Samsung could well find its Android dominance challenged.