- Title: USA: New Windows phones from Nokia disappoint investors.
- Date: 5th September 2012
- Summary: NEW YORK, NEW YORK, UNITED STATES (SEPTEMBER 5, 2012) (REUTERS) MICROSOFT CEO STEVE BALLMER AND NOKIA CEO STEPHEN ELOP ON STAGE (SOUNDBITE) (English) MICROSOFT CEO STEVE BALLMER, SAYING: "Make no mistake about it. This is a year for Windows. Windows phone, Windows tablets, Windows PCs. It is a year for Windows." VARIOUS OF PHONE ON DISPLAY (SOUNDBITE) MIKE WALKLEY, CANACCORD GENUITY, COMMUNICATIONS TECHNOLOGY ANALYST, SAYING: "I thought they had a lot of good hardware and its a good step for Nokia in the right direction. So I think while the smart phone had a lot to offer I think the disappointment today at least for the stock market is a couple things. One is Steve Ballmer said its going to take one to two months to finalize Windows 8 software. Two, Nokia didn't even mention pricing or timing of the device. So I think three, that leads to overall probably limited volume in the fourth quarter, well below consensus estimates for Windows 8 smartphones. I think that would be the disappointment in the stock market today for Nokia and its turnaround I think the disappointment is going to be the fact that its gonna come out later than these new Android phones at the Google event today and more importantly the iPhone 5." PHONE ON DISPLAY (SOUNDBITE) MIKE WALKLEY, CANACCORD GENUITY, COMMUNICATIONS TECHNOLOGY ANALYST, SAYING: "Windows is so far behind in terms of market share against Android and Apple that they have to almost battle at the point of sale person by person to try to get anyone to switch who has already joined these ecosystems, given smartphones sales have taken off but Windows is so far behind in market share, its a big battle ahead to even try to gain relevancy to get to that ten percent global share to build off of long term for Windows to emerge as the third ecosystem." MORE PHONE
- Embargoed: 20th September 2012 13:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: Communications,Technology
- Reuters ID: LVA519WBO1M6V3VDZ9JD03LVENJN
- Story Text: Nokia unveils the Lumia in New York.
Nokia and Microsoft Corp took the wraps off their most powerful smartphone on Wednesday (September 5), but the new Lumia failed to impress investors, and shares of Nokia, which once dominated the cellphone market, plummeted 13 percent.
The Finnish company and the world's largest software maker showcased the device in New York in what may be their last major shot at reclaiming a market lost to Apple, Samsung and Google.
Microsoft and Nokia hope the new Lumia - sporting a bigger screen and cutting-edge camera technology - will become a potent weapon in an escalating global mobile industry war, but investors said it lacked "wow" and gave it a quick thumbs-down. Ananlyst, Mike Walkley said Nokia's reticence on dates and prices did not help.
"I thought they had a lot of good hardware and its a good step for Nokia in the right direction. So I think while the smart phone had a lot to offer I think the disappointment today at least for the stock market is a couple things. One is Steve Ballmer said its going to take one to two months to finalize Windows 8 software. Two, Nokia didn't even mention pricing or timing of the device. So I think three, that leads to overall probably limited volume in the fourth quarter, well below consensus estimates for Windows 8 smartphones. I think that would be the disappointment in the stock market today for Nokia and its turnaround I think the disappointment is going to be the fact that its gonna come out later than these new Android phones at the Google event today and more importantly the iPhone 5," said Walkley, Managing Director and technology analyst at Canaccord Genuity.
Nokia's Helsinki shares began sliding midway through the New York launch and ended down 13 percent at 1.99 euros, logging their biggest single-day loss since June. Nokia's U.S.-listed stock was down nearly 16 percent to $2.38 (USD).
Many of the industry analysts who got to see the phone up close in New York said it was a solid device with a few differentiating features, but it did not push the envelope - as Nokia CEO Stephen Elop had said it would.
The Lumia 920 and smaller Lumia 820 run on the latest Windows Phone operating software, which Microsoft hopes will rival Apple's iOS and Google's Android to become a third mobile platform.
If the new phones do not appeal to consumers, it could spell the end for money-losing Nokia and deal a serious blow to Microsoft in its attempts to regain its footing in the market.
The Lumia 920 - which executives billed as the flagship Windows phone - uses "PureView" camera technology to reduce blurring from hand motion and has wireless charging capability.
Powered by Qualcomm Inc's Snapdragon processor, it comes with augmented reality technology that lets users see details of their surroundings through the camera.
The Lumia 920 - available in yellow or red - sports a bigger, brighter, 4.5-inch screen than Nokia's previous smartphones, taking a page from rivals such as Samsung, which has backed larger displays in past years. The Lumia 920 comes with an 8.7 megapixel camera, in line with rival devices, but Nokia hopes the "PureView" technology will give it an edge.
Nokia announced no partnerships with wireless service providers, leading some analysts to worry this was a sign of weak carrier support, and the Finnish handset maker said it would announce pricing and roll-out dates for the new Lumia only later, on a country-by-country basis.
For Microsoft, successful Lumia sales could convince more handset makers and carriers to support its Windows Phone 8 software, which promises faster performance and a customizable start screen. Samsung last week became the first to announce a smartphone running Windows Phone 8, which it said it would begin selling as early as next month.
Apple's first iPhone revolutionized the mobile industry, popularizing the model of a third-party developer "ecosystem," today considered pivotal to the success of any operating system.
Part of the reason for the limited success of Windows phones is that they support only 100,000 or so apps, compared with about 500,000 or more for Android or iPhones.
There is also the interconnection between apps and content, typified by Apple's iTunes and iCloud, which share content across devices, that acts as a powerful disincentive to switch between vendors.
"Windows is so far behind in terms of market share against Android and Apple that they have to almost battle at the point of sale person by person to try to get anyone to switch who has already joined these ecosystems, given smartphones sales have taken off but Windows is so far behind in market share, its a big battle ahead to even try to gain relevancy to get to that ten percent global share to build off of long term for Windows to emerge as the third ecosystem," added Walkley.
The new phone software is similar to the Windows 8 desktop and tablet software to be released on October 26, making it easier for developers to write apps for both, and Microsoft hopes this will boost the platform's popularity.
The new Lumias could, however, benefit from the continuing decline in Research In Motion Ltd's BlackBerry, and from a recent legal blow to the Android operating system.
A California jury decided last month that some of Samsung's hot-selling Android smartphones copied features of the iPhone, which may result in import bans and drive handset makers to put more resources into making Windows-based phones.
But for Nokia and Microsoft to exploit that window of opportunity, it must first find favor with consumers, who so far have shown little enthusiasm for smartphones with Windows software. - Copyright Holder: REUTERS
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