Success With Windows Phone OS: Nokia Corporation (ADR) (NOK)’s Catch-22

But it’s not just that Microsoft can license its platform to other companies — it’s also the fact that if the company wanted to make its own smartphone, it can (or possibly already has). Rumors have popped up several times that Microsoft is testing its own smartphone and with the Surface tablet already available to consumers, Microsoft could use much of the Surface’s technology in its own smartphone.

What to watch for
Nokia investors have to play the waiting game right now and see if the Windows OS takes off or at least slowly grabs more market share over the next few years. As Windows Phones become more prevalent, you can expect that other handset makers will want in on the action as soon as possible. If that happens, Nokia could lose its first-mover advantage in the Windows Phone spectrum.

It’s imperative that Nokia make the best Windows Phones available to keep consumers from wandering to another company for the same operating system. If the company can’t sell the most desirable WIndows Phones now and in the near future, Nokia may see itself being outpaced by other handset makers who know more about the smartphone landscape, like Samsung.

The article Success With Windows Phone OS: Nokia’s Catch-22 originally appeared on Fool.com and is written by Chris Neiger.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

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