Biggest hurdle facing Nokia -- "It's Lumia or bust"

Summary:Nokia is putting all its eggs in the Windows Phone basket, and it's not paying off.

The latest financial figures shared by Nokia show the Finnish phone maker is on rocky ground. Colleague Larry Dignan has the detailed analysis that paints a dim picture for Nokia. The bottom line for Nokia can be summed up in four words, aptly penned by Dignan. "It's Lumia or bust".

Nokia has gone all-in with Microsoft and the Windows Phone platform, and not only has that so far proven futile it's not clear that can change. Windows Phone is not setting the smartphone world on fire as a platform and Nokia is paying a heavy price.

With the very future of Nokia riding on Windows Phone, Nokia is depending on the growth of the platform. That isn't happening yet, and the question is how long can Nokia ride that wave. Actually, it's more of a calm than a wave.

It's not clear how Nokia's Lumia line is doing against other Windows Phone offerings. Forget the other competing platforms and focus strictly on Windows Phone and there is no indication that Nokia is even on top of the Windows Phone world.

That's significant as Microsoft has been working closely with Nokia to get the Lumia line going. There's also that "platform support fee" of $250 million that Microsoft laid on Nokia in the latest quarter. Nokia has the best situation possible in the smartphone space, and still isn't making significant sales.

What can Nokia do to get back on track and improve its financial standing? There's not an easy answer to that, due to the near total dependance the company now has on Windows Phone. Like Dignan says, "it's Lumia or bust", and that's not necessarily a good thing.

Topics: Nokia, Banking

About

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' w... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.