Does the Samsung-Nokia takeover rumor make sense?

samsung nokia rumorsNokia is no stranger to acquisition rumors, and the latest has the company being bought out by Samsung. The handset manufacturer is experiencing pressure as new companies are usurping its hold over cheap phone production – the New York Time says companies like ZTE and Micromax are seriously challenging Nokia profits. Amid the companies many public financial issues is a new report from the Wall Street Journal saying Samsung is interested in buying the company – a claim Samsung and Nokia have both declined to comment on. “It seems like a market rumor and we don’t comment on rumors,” a spokesman for Samsung says.

Just last week, Nokia said that rumors it was being acquired by Microsoft were “100-percent baseless.” The attention did drive its stock up however, a boost the struggling Nokia likely enjoyed. So is this just another round of stock-boosting rumors or potentially a deal in the making?

Why it doesn’t make sense

It seems suspect that Samsung, a brand that has successfully aligned itself with Android, would want to acquire the floundering Nokia. Samsung is poised to take on Apple as Android continues to grow its brand and improve its market position. Its Android handsets – most notably the Galaxy S series – are easily some of the most well-rated and popular on the market, and it’s ready to debut more. The Galaxy tab lineup, while it’s experienced bumps in the road, has easily been the most capable iPad competitor to date. And while it’s probably not something Samsung would take into consideration, it has some major issues with WP7 updates (although it should be mentioned that’s not surprising for Samsung handsets, which have become notorious for OS upgrade roadblocks).

Another reason to be suspect is the recent Microsoft takeover rumors. It’s no secret that acquisition rumors occasionally have positive effects on company stock, as it did for Nokia recently. This could be nothing more than baseless word of mouth spread with the sole intention to give Nokia a little boost.

Why it makes sense

Disclaimer: We’re leaning toward the “doesn’t make sense” side, but want to play devil’s advocate here. The only reason this deal could possibly make sense is if Samsung is interested in establishing itself not only as a top Android provider but the top Windows Phone 7 provider as well. A recent IDC report said that Samsung WP7 phones were “gaining traction” and also mentioned that the manufacturer’s “multiple operating system strategy” could have been a factor in its huge year: It had the largest year-over-year net gain out of Apple, RIM, HTC, and Nokia.

And while Nokia’s various internal issues are a reason Samsung may steer clear, they could also imply the opposite: Nokia has been sounding pretty desperate, and it may be willing to sell to Samsung for far less than we’d expect. The company recently was forced to lower its projected outlook for the rest of the year, furthering explaining it expected second quarter sales to “be substantially below” expectations. Its most recent earnings call fell just short of depressing and shook investor confidence: Nokia went as far as to say that it won’t be setting annual targets for the time being.

Mobile

Samsung Galaxy Note 10 display could be bigger than the iPhone XS Max screen

The Samsung Galaxy Note 9 was only released a few months ago, but Samsung is already working on a follow-up. Not much is known about the Samsung Galaxy Note 10 just yet, but we do have a few details.
Mobile

5G version of upcoming Galaxy S10 may feature 6.7-inch display, six cameras

While we still may be months away from an announcement, there's no doubt about it: Samsung is working hard on its successor to the Galaxy S9. Here's everything we know about the upcoming Samsung Galaxy S10.
Deals

Save up to $850 with the best smartphone deals for November 2018

Need a better phone but don't want to spend a fortune? It's never a bad time to score a new smartphone and save some cash. We rounded up the best smartphone deals available that can save you as much as $850.
Mobile

Samsung will reportedly announce its folding smartphone at MWC in February

Samsung has been showcasing bendable display tech for a few years and now a folding smartphone might finally arrive. The Galaxy X, or perhaps the Galaxy F, may be the company's first example. Here's everything we know about it.
Mobile

How does fast charging work? Here’s every single standard compared

Modern smartphones can charge in mere minutes instead of hours. How does fast charging work? Here's a guide to the most popular standards, including Qualcomm Quick Charge, Apple fast charging, OnePlus Dash Charge, and more.
Mobile

Keep your phone organized with one of the best file managers for Android

Your smartphone has a limited amount of storage space and all sorts of files tend to accumulate if you let them. To keep things in order and find what you need, you should snag one of the best file managers for Android.
Mobile

Upcoming Honor View 20 may forgo the notch for new display technology

Nearly a year after Honor released the spectacular Honor View 10, the Chinese smartphone giant appears to be hard at work on its successor, the Honor View 20. Here's everything we know about the upcoming midrange powerhouse.
Mobile

Selfie-mad Meitu phones are now made by Xiaomi, may be sold globally

Meitu, a Chinese brand best known for its selfie and beautification software, has handed over its smartphone business to Xiaomi. The company now has the global license to produce phones using the Meitu name.
Mobile

Huawei's folding smartphone reportedly will launch at MWC 2019

Huawei will release a folding smartphone with 5G connectivity in 2019, according to the CEO and executives for the company. Rumors are also spreading to take away some of the mystery surrounding the exciting device.
Mobile

Keep your Galaxy S8 and S8 Plus free of smudges with a screen protector

The display on Samsung's Galaxy S8 is gorgeous, but it's not exactly rugged. Thankfully, these screen protectors will help you safeguard your new device from unwanted wear and tear.
Mobile

Photos attributed to midrange Google Pixel Sargo suggest flagship-quality camera

The Google Pixel 3 and Pixel 3 XL are considered to be two of the best Android smartphones, but it looks like Google could be prepping a third. A budget Pixel 3 that boasts some of the best features of the other two has been leaked.
Mobile

T-Mobile OnePlus 6T phones get some improvements in update

The new OnePlus 6T continues OnePlus's tradition, coming with flagship power, camera performance, and the gorgeous design you want -- but for under $600. Here's everything you need to know about the OnePlus 6T.
Mobile

Google replaces its classic Search page with Discover on mobile devices

As part of its 20th anniversary, Google unveiled its plans to improve Search, starting with its Google Feed. Now known as Discover, the update brings along a redesign to help you find content that aligns with your interests.
Mobile

How to find a lost phone, whether it's Android, iPhone, or any other kind

Need to know how to find a lost phone? We have a simple guide right here that will help you to locate your lost or stolen phone using both native and third-party apps and services, whether it’s a smartphone or an older model.