Google Inc (NASDAQ:GOOG)’s Android, despite being a runaway success, has come under a lot of scrutiny from both enterprise clients and app developers. BBC reports that Android’s security has been found to be profoundly faulty by research firm BlueBlox. According to the research firm, all Android versions since 2009 have a security bug that exposes device users to extreme threats including eaves dropping, sending junk mail, data manipulation and data theft. Although Google Inc (NASDAQ:GOOG) has not commented, BlueBox’s findings remains consistent with a recent Juniper Networks, Inc. (NYSE:JNPR) mobile threats report which says that Android attacks are up from 24% in 2010 to 92% in 2013.
Even with the Bring Your Own Device concept, enterprise clients are less likely to encourage Android devices in the work in light of these kinds of security concerns. Such an occurrence could easily have a ripple effect and spill over into the consumer market. This will spotlight Windows Phone as a more secure ecosystem.
Android’s fractured ecosystem also presents a huge disadvantage to app developers. Because of the multiple platforms (Donut, Gingerbread, Ice Cream Sandwich), developers are finding it increasingly hard to maintain support across the board. And worse still, they are forced to work in the shadow of nameless fraudulent developers who look to go viral with suspicious apps that cause havoc rather than solve problems. This problem remains a thorn in the flesh of Android’s app ecosystem. Windows Phone can also capitalize on this mistake.
The fact that Windows Phone is also available on mid-range smartphones makes it a better pick for developers who want to extend their reach – nothing like Apple Inc. (NASDAQ:AAPL)’s iOS, which is limited to the high end of the market.
Conclusion
The potential for Windows Phone is immeasurable. And as Nokia Corporation (ADR) (NYSE:NOK)’s Lumia continues to gain traction, Windows Phone’s impact will be felt more and more.
But why isn’t Microsoft going the extra mile just yet? It’s simple. Let Nokia spend its cash, and when it has little to bargain for, swoop in. Nokia Corporation (ADR) (NYSE:NOK) will be defenseless because of its weak cash position and also because Microsoft Corporation (NASDAQ:MSFT) will leverage the lack of exclusivity in the partnership to push for a deal. And if you take a skewed look at it all, you will realize that this falls in line with Ballmer’s renewed ‘devices and services’ position; especially the devices part.
Nokia Corporation (ADR) (NYSE:NOK) is a good short-term buy. Microsoft however remains the better long-term investment.
The article Nokia Is Microsoft’s Endgame originally appeared on Fool.com and is written by Lennox Yieke.
Lennox Yieke has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT). Lennox 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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