Wells Fargo Sees 'Little Impact' to Industry Dynamics Following MSFT/NOK Deal, Could Push Apple to Hasten Fourth-Screen Strategy
The Wells Fargo analyst believes "there will be little impact to the overall industry dynamics and some opportunity for other vendors during the transition."
Um noted the deal does not make Nokia's "portfolio immediately more competitive." Um does however believe the deal places "more financial muscle behind the products and could eventually create a more compelling device if MSFT can better integrate its portfolio of assets, particularly Xbox & its content as well as its installed base of Windows-based PCs."
Um said he was surprised by the valuation, but said the deal "makes sense in that it puts the fate of MSFT's mobile OS, in its own hands rather than in the hands of a partner."
Related to Apple (NASDAQ: AAPL), Um believes there will be no near- or medium-term implications from the Microsoft, Nokia deal, but he did say the news "could light a fire under the company to accelerate its 4th screen (TV/content) strategy."
Considering BlackBerry's (NASDAQ: BBRY) current pickle, Um noted "few options for BBRY," pointing out "the possibility of a take-out is likely to keep the stock in a holding pattern near-term" despite the "struggling" core business.
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