Microsoft has to hate Nokia

Sources are telling that the Finnish handset maker is going to launch a Windows RT tablet on Sept. 26

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Microsoft's  (NASDAQ: MSFT)  apparently hoodwinked Nokia  (NYSE: NOK)  into backing another of its crazy Windows-fueled dreams.

Sources are telling The Verge that the Finnish handset maker is going to launch a Windows RT tablet on Sept. 26. The tech blog reported this earlier this month, but yesterday it offered up some more details on Nokia's doomed gadget.

We're not talking about Windows Pro, the mobile operating system that at least runs PC programs. Windows RT is the scaled-back platform that Microsoft is hoping takes off despite a lack of hardware and developer support.

There's apparently a lack of fan support, too.

Industry watcher IDC reported earlier this month that just 200,000 of the 45 million tablets shipped during the this year's second quarter — or 0.5% — were Windows RT devices. There's a reason why Microsoft slashed the price of its own Surface RT tablet by as much as 30% this summer.

Nokia's a bum magnet, but that's no excuse for following Mr. Softy down this downward spiral.

Yes, Nokia's desperate. Revenue's sliding, and profitability's been spotty. Microsoft's paying Nokia good money to support Windows Phone, but at some point this debasing has to end. The Lumia line of Windows Phone smartphones has been marginally successful, but there's no way that this is going to work.

The scariest thing is that The Verge is hearing that the new tablet — fittingly slapped with the codename of Sirius, the Dog Star — will be priced comparably to Apple's (NASDAQ: AAPL) iPad.

Yes, the proposed specs are impressive, surpassing what Apple currently has on the market in many ways. However, wasn't pricing the Surface RT at similar price points to the iPad what ultimately did it in? The tablet war is one that's being won on platform — not spec sheets. Didn't Nokia learn from its sugar daddy's mistakes? Microsoft had to take a US$900 million charge in its latest quarter because it overestimated the appeal of Surface tablets.

More importantly, even Apple isn't what it used to be. In the same IDC report, Apple's share of the tablet market has contracted from 60% to 32% over the past year. The mass market is gravitating to even cheaper Android tablets that have the developer support lacking with Windows RT.

Nice job with the Sirius codename. Nokia used to be a star. Now it's just a dog.

The Australian Financial Review says "good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit." Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

A version of this article, written by Rick Munarriz, originally appeared on fool.com.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »