Zoom in
It won’t be the first time Nokia Corporation (ADR) (NYSE:NOK) would revolutionize its phone’s camera experience, as it had launched a 41 MP camera 808 PureView device last year. The device, beyond doubt, is a stand apart piece from camera technology, but its outdated Symbian OS was the reason that neither the company nor carriers showed interest in marketing it.
However, the present scenario is more in Nokia Corporation (ADR) (NYSE:NOK)’s favor as its Windows phone is gaining traction and a more updated OS should attract customers. A high-end PureView innovation would definitely give the Lumia phones an edge over the Android and the iOS by sporting a feature its competitors couldn’t match.
JV segment up for grabs
The Nokia Corporation (ADR) (NYSE:NOK)-Siemens telecom equipment JV, has been troubling the company for some time now and it has been looking ways to exit the segment. In order to sell its stake in JV, it has invited Private Equity groups. Blackstone seems to be a potential buyer. It has also been reported that the company might be looking at the possibility of coming up with an IPO in an effort to rid itself of its stake.
Though Nokia Corporation (ADR) (NYSE:NOK) believes in the potential of JV, the telecom equipment business is highly competitive and the company lacks the financial resources to own it completely. Therefore it thinks the best option may be to divest. The sale of its stake would free resources for the company to focus on its core mobile business and strengthen the balance sheet by almost doubling its cash position.
Nokia’s camera competitor
Nokia Corporation (ADR) (NYSE:NOK) is working hard on camera quality to differentiate its smartphones, but Samsung too is catching up with its Galaxy S4 that has a 13 megapixel camera. The phone also has a dual shot feature which helps you take pictures and videos from both the front and back of the phone simultaneously. Dual Shot gives tourist snaps and party shots a more personalized look especially when you self click it.
Further, Samsung is releasing a Galaxy S4 Zoom, a variant of its flagship Galaxy S4 smartphone. The new variant will have a 16-megapixel digital camera, with features an optical image stabilizer, xenon flash, and a 10X optical zoom lens for a better picture experience. The Galaxy S4 Zoom has a feature zoom ring which can instantly take and share a photo while you are actually on a phone call.
Apart from high end camera phones, Samsung has penetrated the lower range market too. It’s the most sought out smartphone company in emerging countries with devices at almost all price points. Samsung has delivered an exponential growth in earnings over the last three years to just over 35% and revenue growth of around 10%.
Final take
Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Ltd (NASDAQ:BBRY) have both been performing well since their turnaround, and they have great support with a lot of cash on their balance sheets. Their stock prices have been very low and downside is limited as they have been trading near their book value. Both of these companies have the potential to give you a good return on your money.
tarun bachhawat has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article These Turnaround Companies Are Safe Bets originally appeared on Fool.com.
tarun 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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