Several industry analysts said even with a likely lower purchase price for Nokia, as its stock price has declined over the past year, it would be a bad idea to buy the Espoo, Finland-based phone maker.

"Microsoft would be foolish to buy Nokia, plain and simple," said Jack Gold, an analyst at J. Gold Associates. "This idea of Microsoft buying Nokia comes up each time Nokia has a bad quarter, and some financial analysts think it's a good idea -- no doubt to pump up the Nokia stock a bit."

Gold added, "There really is no advantage to Microsoft owning a device hardware company."

"A software company running a hardware company almost never works out," because of cultural differences between the two work groups, added Rob Enderle, an analyst at Enderle Group.

Analysts also noted that Microsoft needs to work with several hardware vendors to build Windows Phones, and wouldn't want to be seen as exclusive to Nokia by purchasing it, especially with the Windows Phone 8 operating system on the way.