Back to top

Analyst Blog

Handset manufacturing giant – Nokia Corporation (NOK - Analyst Report) – has entered into a partnership with Indian telecom carrier Bharti Airtel Limited, allowing the latter to offer some of Nokia’s value added service (VAS) in Africa.

The deal is expected to boost the revenue of Nokia’s mobile application store that offers both national and international content.

As per the deal, Bharti will start selling popular Nokia VAS like Life services, Xpress browser and Store Operator Billing. Nokia Life service provides customised information in the field of education, agriculture, healthcare and livelihood, which are delivered by text at a relatively lower cost than other sources.

Nokia Life service is already available in 18 different languages and is being accessed by more than 95 million people. Nokia Life is already available in Nigeria and Bharti will extend its reach within the continent by launching it in Kenya this month. The partnership will be the first of its kind for Nokia in Africa, where smartphone sales are expected to climb by 56% in 2013. This in turn will drive larger volume of apps and game downloads, thus improving the prospect of Nokia’s Value added services.  

Other areas of collaboration include Nokia Xpress browser a cloud based internet platform, which provides customers with increased download speed by compressing data. On the other hand, Nokia’s billing solution will allow customers to download apps and games from the Nokia store, charges for which will be included in their monthly phone bills. 

For the last couple of years, Nokia has been combating market share loss to Apple Inc.’s (AAPL - Analyst Report) iPhone and other smartphones running on Google Inc.’s Android operating system. Lack of application has been one of the main reasons why Nokia is lagging. Both Google and Apple have more than 800,000 applications while Nokia has only 100,000 applications in its kitty.

We believe that tying up with Bharti will popularize Nokia’s applications and draw in smartphone users of the other operating platforms. It will also act as an additional source of revenue for the Finnish handset manufacturer.

Nokia currently carries a Zacks Rank #3 (Hold). Among the other companies in the same industry where Nokia operates, Interdigital Inc. (IDCC - Snapshot Report), with a Zacks Rank #2 (Buy), is a better option for the investors.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%
RF MICRO DE… RFMD 11.76 +2.31%