Biggest hurdle facing Nokia -- "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.