Nokia (NYSE: NOK) is up 44% in the past 3 months as sales of the Lumia 920 seemed to have beaten estimates (a very low bar but still) and that Nokia will be able to get into the world's largest mobile phone carrier, China Mobile. The really big news is that China Mobile will subsidize the cost of Nokia's 920T phones (on a 2 year contract with a data plan). This will bring down the cost to 1 yuan, or less than 20 cents in US currency. Aka, free. This provides Nokia with a huge chance at turning themselves around and becoming a serious competitor again.
Another reason why Nokia shares have gone from their $1.68 low to $4 is because of a strong reception in the US. AT&T, the exclusive seller of the Lumia 920 phones in the US reported strong demand for the new phone. The Lumia 920 was the third bestselling smartphone for AT&T, behind the iPhone 5 and Samsung Galaxy S3. The Lumia 920 also had a very strong showing on Amazon and was topping the best seller charts for a while with 2 week wait times reported. To be fair you have to take into consideration that low supply also had a hand in that, but overall this is still very good news for Nokia and Microsoft.
The really big catalyst in Nokia's future is in January when subsidized Lumia 920T phones go on sales in China. When that happens expect a big spike in Nokia's stock price. Why? Because Chinese consumers will be able to buy the phone for virtually "free", if they get the 2 year contract. That will make phones with a hefty price tag like the iPhone 5 look a lot less attractive. While rumors are just rumors and concrete facts are the best things to invest in, Nokia's future seems bright. I will write another update after Nokia's earnings release to keep you posted on this turnaround play. Still bullish on Nokia.