Amazon Stock Analysis: Amazon Is Subsidizing A Nokia Android Phone

motek 1 The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First

Amazon Stock Analysis


  • Amazon is the most valuable e-commerce company today.
  • It touts more than 80 million Prime members. Amazon is now offering a deeply discounted Nokia 6 Android phone to as a Prime Exclusive phone in America.
  • The backing of Amazon could hasten the revival of Nokia’s brand power in North America. The more Nokia Android phones that are sold, the better it is for Nokia’s licensing business.
  • Nokia also needs its brand to regain more public awareness. It is now a digital health device vendor.
  • I Know First has positive near and long-term algorithmic forecasts for NOK.

Amazon (AMZN) is now offering a subsidized Nokia (NOK) 6 Android phone to its 80 million Prime members. Prime members can get the unlocked Nokia 6 with a $50 discount, $179.99 instead of its original price of $229.99. Amazon is the world’s valuable e-commerce firm and it is helping Nokia smartphones make a comeback in the United States.

This new partnership could improve Nokia’s already impressive +28.7% YTD gain this year. Cracking the U.S. smartphone market could seriously boost the image of Nokia among investors.

Amazon Stock Analysis


(Source: Google Finance)

What’s In It For Nokia?

HMD Global maks the Nokia 6, but Nokia still gets patent and brand licensing royalty fees. The more Nokia Android phones that are sold, the better it is for Nokia’s bottomline.  Amazon’s massive presence can help re-establish Nokia’s brand power in America. Nokia needs people to be more aware of its brand because it is now selling health monitoring devices. Nokia’s comeback as a consumer device vendor is hinged on it becoming a digital health service provider, while also becoming a vendor of health tracking devices.

Aside from health tracking gadgets, Nokia now also sells a smart thermostat and the Home digital residential/office security camera. Yes, Nokia has licensed HMD Global to sell phones. However, Nokia is now trying to become an Internet of Things product manufacturer with a strong focus on health monitoring devices.

Amazon Stock Analysis


(Source: Nokia)

The $199.99 Nokia Home monitoring camera is a small step forward toward Nokia becoming a player in the $30.37 billion global industry for video surveillance. This niche market for home surveillance videos is also predicted to grow at a CAGR of 15.4% until 2022.  Five years from now, the video surveillance industry is expected to become a $75.64 billion industry.

Nokia’s future in video surveillance products will greatly depend on how effective it could build its brand as a trusted source for home and office video cameras. Amazon’s selling smartphone products under the Nokia brand is another brand-building event which we should always appreciate.

Amazon Joins Apple To Promote The Nokia Brand

It is true that Apple (AAPL) has agreed to sell Nokia-branded health monitoring devices on its online and retail stores. However, only Amazon has agreed to sell the Nokia 6 as a subsidized phone offer exclusive to its 80 million Prime subscribers. Since Amazon has not shown any interest in selling its own line of health monitoring products, I expect Nokia could also try to convince Bezos to sell its Nokia smartwatch and fitness trackers as a discounted Prime Exclusive.

In my opinion, Nokia still needs to sell consumer products because its core business of networking did little to improve its stock’s performance. NOK’s price only started to rise again after Nokia and HMD Global (the exclusive licensor of the Nokia brand on smartphones) launched the Nokia 6 Android phone in China in January of this year.

Why Amazon Chose Nokia 6

Amazon’s acceptance of the Nokia 6 in its Prime Exclusive program is also a strong endorsement of the phone’s build quality and market appeal. Foxconn (part owner of HMD Global) is the biggest iPhone assembler and it is also responsible for the manufacture of Nokia-branded phones. Foxconn gave the Nokia 6 a premium metal body design with stock Android 7.0 OS.

Aside from sporting the iconic Nokia trademark, Amazon definitely liked the Nokia 6’s premium-like construction and decent performance. HMD Global’s first Nokia Android phone scored 43,889 under Antutu v.6.0.

Amazon Stock Analysis


I am highly confident that many of those 80 million Prime members will buy the Nokia 6. It is a nostalgic brand that still evokes memory of yesteryears. I also like that HMD Global decided to use a stock Android 7.0 OS on its first Android phone, instead of Nokia’s custom Z Launcher UI for Android. A stock Android OS will always run faster than a custom UI made by third-party firms.


I was already happy that Nokia and Apple are friends again. I’m now even more bullish for NOK after Amazon decided to sell the Nokia 6 as a discounted Prime Exclusive phone. Amazon and Apple are two allies which could help Nokia jumpstart its ambition to become a leader in global video surveillance cameras and health tracking gadgets.

Nokia cannot rely along on its core networking business to impress investors. It must have a successful return as a consumer gadget vendor to gain the respect of retail and institutional investors. Amazon and Apple’s help can go a lot toward making Nokia a household brand name again.

NOK remains buy in my book. My bullish rating for NOK is again backed by its positive near and long-term algorithmic forecasts.Amazone Stock Analysis

An analysis of important monthly technical indicators also revealed that NOK is still a buy.

Amazon Stock Analysis


Nokia also touts a Very Positive Hedge Fund Confidence Signal. It means there are hedge fund managers who are buying than there are selling/shorting NOK.

Amazon Stock Analysis


Past I Know First Forecast Success With Nokia

In such as the one dated on March 26, 2017, the algorithm accurately forecasted a bullish signal for NOK.  In a 3 month span , the stock rose steadily by 15.55%.

This bullish forecast for TSLA was sent to I Know First subscribers on March 26, 2017. To subscribe today click here.