Nokia Predicted to Bid Adieu to Handset Business: What Could Be the Reason for Departure?

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Finnish manufacturer Nokia seems to throw a big shocker to all the tech enthusiasts as per the recent reports that are getting viral on the web. According to a prediction by Keepskor founder and Forbes contributor Tristan Louis, Nokia will be departing from the mobile phone business and sell all its mobile operations and infrastructure divisions to Huawei.

The report also claims that Nokia will be initiating this step in order to focus on software and services. With the company's bet on the latest incarnation of the Microsoft's platform - Windows 8 being not so successful, it will sell its smartphone group to the software giant - Microsoft and its telecom interests to Huawei.

The Forbes report claims Nokia's departure from the handset market as the most notable tech events of the year.

Nokia Predicted to Bid Adieu to Handset Business: Reason for Departure

Unlike Louis's other predictions, which are mostly common sense trends or speculation backed by months of rumors including Amazon's and Microsoft's plans for a smartphone, the offloading of Nokia's handset business appears to be a wild guess. Moreover, there is no substantial evident for the theory and the involvement of Microsoft and Huawei also appear to be a shot in the dark.

Reason behind departure from handset market

As of now, Nokia has reported six consecutive quarterly losses, despite of its struggles to continue in the field from some more time. The only possibibility for Nokia to remain in the smartphone arena dominated by Android and iOS is its Windows Phone 8 based Lumia lineup of smartphones.

Even in Q3, 2012, Nokia quoted an operating loss of $754 million in three months and that the sales of the Lumia smartphones have dropped by 1.1 million between Q2 and Q3.

Another prominent reason for the departure of Nokia from the mobile phone business could be mainly due to its constant failure in trying to retain its position in the global smartphone market.

Nokia sank to seventh place in the booming global smartphone market in the third quarter, as Apple and Samsung maintained their hold on a segment once dominated by the Finnish company.

Moreover, going by the earlier reports, Nokia is planning to launch the successor of its current flagship smartphone - Lumia 920 codenamed Catwalk sometime this year. Hence, these predictions may or may not be true. Until there is a final confirmation from the Finnish manufacturer, these assumptions will have to be taken as a grain of salt. 

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