Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is reportedly working on a waterproof phone with an advanced waterproofing technology. The technology, which was developed by P2i, protects phones on a microscopic level, coating components in a waterproof coating. That allows greater versatility and could give Nokia an advantage going forward.

Other companies have already gotten in on the waterproof smart phone market, the Sony Corporation (NYSE:SNE) (TYO:6758) Xperia Go comes to mind, but none have utilized this kind of coating technology. The advantages of molecular level water resistance are manifold, though the technology has not yet been fully tested.

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The kind of waterproofing developed by P2i allows phones to still have traditional ports and an ordinary headphone socket. Most current generation water proofing involves sealing the chamber that the components are in. That process means the phones aren’t as versatile as other smart phones. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) could capitalize on demand for a better durable phone.

Nokia needs to do more than just offer low end phones and standard premium smart phones like the Lumia. In order to be the biggest company in the market, the firm needs to offer something different. A durable smart phone could be the cure for the company’s current malaise. It also throws back to the company’s traditions.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is famous for the low cost high function durable phones it sold in the 1990’s. A return to the best qualities of its brand, with the added functionality of modern technology, could be the best route for the company to take going forward.

Nokia is not the only company with this technology, however. Alcatel, Huawei and Motorola have all worked with P2i in the past, but none of those firms have the qualities of Nokia Corporation. Nokia has a brand that links well with the technology, and the ability to operate in a smart phone ecosystem that it defines, despite the small market share.

According to the rumors, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is planning to release a waterproof phone in 2013. If the firm uses the technology in a high quality phone it could be a big break for the company. If the upcoming waterproof phone is a budget model, it will show little has changed at the Finnish device maker.