Fact: The partnership between Microsoft Corp. and Nokia Corp. is the subject of intense analyst and media scrutiny.
What we don't know is how that partnership will ultimately shake out and impact the future of Nokia, the world's largest handset maker.
Nokia on Thursday denied a report from a tech blogger that Microsoft is preparing to buy Nokia's smartphone division.
"We've put these rumours to rest a long time ago," Nokia UK told SlashGear. "The focus for Nokia is on executing on our partnership around Windows Phone and growing the ecosystem, and each company has the tools they need to do so."
At least one analyst isn't so sure that Microsoft and Nokia are in a good position. "Microsoft’s traditional business model of licensing mobile phone software will lose money hand over fist so long as Google is offering Android for free," said Carl Howe, research vice president at Yankee Group and co-author of the report, “Ignore the Denials: Microsoft Should Buy Nokia." “If Microsoft’s Windows Phone has any chance of gaining market share against Apple iPhones, Google Android-powered phones and even Research In Motion’s BlackBerry, it needs a way to profit from phone sales, not software licensing. Buying Nokia is its best shot at doing that."
Wall Street analysts and others are certainly divided over the health of Nokia. Credit Suisse has put a "buy" rating on Nokia and lifted its target price, and believes Nokia's Windows Phone partnership with Microsoft will benefit the company, The Wall Street Journal reported. But UBS cut its target price on Nokia, the Journal reported, asserting its belief that the handset giant "faces significant long-term challenges."
