Samsung Electronics Co. Wednesday declined to comment on market speculation that it could be preparing a bid for ailing Finland-based handset maker Nokia Corp.
“It seems like a market rumor and we don’t comment on rumors,” a Samsung spokesman said.
Nokia spokeswoman Mona Kokkonen also said the company doesn’t comment on rumors.
It’s unclear of what’s driving the takeover rumor, and frankly it doesn’t make any sense at all. Samsung has only recently made it to the big leagues of smartphone success with its Galaxy S Android phones last year. It seems foolish for the company to buy Nokia when it would have to spend significant effort retooling the problematic company, which would also distract it from focusing on its own phones.
Last week, Microsoft was rumored to be considering Nokia’s smartphone division for $19 billion. And while that deal made much more sense than a potential Samsung takeover, there was still little that Microsoft had to gain by buying Nokia. (Nokia CEO Stephen Elop later called those rumors “baseless.”)
Nokia’s failure to keep pace in the high-end market with nimbler rivals including Apple Inc. and the growing number of devices based on Google Inc’s Android saw it abandon its Symbian platform for smarthpones in favor of a partnership with Microsoft and its Windows Phone software.
“Samsung acquiring Nokia doesn’t seem very feasible as the two companies are on quite different trajectory paths,” said Canalys analyst Pete Cunningham. “Samsung has seen tremendous growth and is launching new pads trying to target Apple, whereas Nokia is clearly going backwards losing market share very quickly. I don’t see a lot of value in Samsung acquiring Nokia.”