Nokia on Thursday said it is critical for Windows Phone to attain 10% market share over time, well above its current level of less than 3%. But getting there is still an unclear goal, given that Microsoft and Nokia haven't produced phones intended from inception to have hardware working with Windows Phone software, analysts said.
"The overall issue with Nokia is that they haven't yet fully executed their Microsoft strategy," Enderle noted. Nokia's recent Lumia phone line was designed before the Windows Phone partnership with Microsoft was announced last year, he said.
"We have yet to see hardware that was designed for the Windows Phone software, or for Nokia to use their special rights to create a unique Windows Phone experience," Enderle added.
Microsoft would do well to boost its marketing funds for Windows Phone if it wants to help Nokia, analysts said. "Microsoft has virtually eliminated Windows Phone marketing funding inside the company, and that was the budget they used to fund Nokia," Enderle said. "The Windows Phone platform marketing is massively underfunded."
Were Microsoft to buy Nokia, marketing for Windows Phone would probably be slowed further due as resources are stretched, and Microsoft wouldn't be able to improve Nokia revenues soon enough to have an impact, Enderle said. "If Microsoft bought Nokia, they'd likely end up killing it more quickly."
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