Should You Say No to Nokia Corporation (ADR) (NOK)?

The net income of the company was $6.9 billion primarily propelled by the increase in sales of the iPhone, which compensated for the decline in sales of the iPad and Mac. The extensively high loyalty rate of Apple Inc. (NASDAQ:AAPL) costumers makes it difficult for any other competitor to damage Apple Inc. (NASDAQ:AAPL)’s sales.

Apple Inc. (NASDAQ:AAPL) is further trying to expand its presence as the company ended the quarter by opening six new stores across five countries and backed it up by planning to open nine more stores before the end of the present quarter. The expected launch of iOS 7 will not be good for Nokia Corporation (ADR) (NYSE:NOK), as Apple Inc. (NASDAQ:AAPL) has promised a dazzling new interface and many splendid new features.

Google

Google Inc (NASDAQ:GOOG) also recently released its quarterly results as the company generated revenue of over $14 billion, signifying an increase of 19% year-over-year, but falling shy of the consensus estimates. The 900 million activated Android devices, along with 1.5 million new devices being sold every day, boosted Google’s margins drastically.

The company is planning to make certain advancements to its devices which will make Android even more user friendly. These advancements include the following:

• Upgraded Google Inc (NASDAQ:GOOG) Maps, which is more user-friendly and easier to use is now available on almost all Android devices.
• New software in Google Plus, which automatically improves and enhances the quality of the clicked photo.
• New communication app, called Hangout, for video chatting and messaging.

All these innovations will certainly help Google Inc (NASDAQ:GOOG) to perform better and will damage the sales of Nokia Corporation (ADR) (NYSE:NOK).

Final summary

While the competitors of Nokia are making their phones more user-friendly, Nokia is focused on cutting expenses, and, in my opinion, Nokia Corporation (ADR) (NYSE:NOK) may not be able to perform well in the future. Further, Nokia’s unwillingness to switch to Android operating system will have a negative impact on its future performance.

The article Should You Say No to Nokia? originally appeared on Fool.com and is written by Ayush Singh.

Ayush Singh has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). Ayush 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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