Microsoft Corporation (MSFT), Nokia Corporation (ADR) (NOK): The Death of Windows RT?

Nokia may have an advantage being the dominant Windows Phone maker. In May Nokia Corporation (ADR) (NYSE:NOK) accounted for 80% of all Windows phone devices, and although the total market share of Windows Phone is small it is growing. This dominance could make Nokia tablets stand out from those of other manufacturers.

Nokia made the right call by dumping Windows RT, and given that Nokia is a Microsoft Corporation (NASDAQ:MSFT) partner I’d argue that this move is a death knell for Windows RT. If Nokia Corporation (ADR) (NYSE:NOK) won’t commit to the OS, then who will?

If Nokia can become the premier Windows tablet company much like it has become the premier Windows phone company than the company may return to profitability sooner rather than later.

What this means for Intel

ARM-based processors have typically been far more energy efficient than Intel Corporation (NASDAQ:INTC)’s offerings, but that is quickly changing. Intel Corporation (NASDAQ:INTC) recently launched the Haswell line of processors, mainly for PCs and high-end tablets, which offers greatly increased battery life for mobile devices. The company’s other line, Atom, is aimed at lower-end mobile devices and is being designed with low power applications in mind. The Nokia Corporation (ADR) (NYSE:NOK) Window tablets will likely run on an Atom chip.

For Intel Corporation (NASDAQ:INTC) the death of Windows RT is good news, since now all Windows tablets will likely run on Intel chips. Analysts have become concerned that Intel won’t be able to maintain its margins as it moves into the mobile space, but if Windows tablets become popular I think this concern is overblown. Intel Corporation (NASDAQ:INTC) was recently downgraded by analysts due to this issue.

The bottom line

Windows RT does nothing but muddle the Windows 8 picture. Microsoft Corporation (NASDAQ:MSFT) needs to drop it and focus solely on Windows 8. This would make its strategy much more coherent and be far less confusing for consumers. Nokia made the right call to drop Windows RT, and the company has a real shot at making a successful tablet with Windows 8 and Intel Corporation (NASDAQ:INTC) CPUs.

The article The Death of Windows RT? originally appeared on Fool.com and is written by Timothy Green.

Timothy Green owns shares of Microsoft. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel and Microsoft. Timothy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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