The market responded to Nokia Corporation (ADR)(NYSE:NOK)’s release of its new Lumia phones by driving down its shares.
Its shares trading in New York closed down 16 percent at $2.38. In Europe its shares ended down nearly 13 percent at 1.99 euros, its single biggest one-day loss.
The Finnish handset maker on Wednesday released the Lumia 920 and Lumia 820 running on Windows Phone 8 software, but failed to impress investors.
Microsoft and Nokia are hoping that brighter colours, a bigger screen and technology that reduce blur and shakiness in pictures and video - will become a potent weapon in an escalating global war to dominate the mobile industry.
But, according to GMA News, investors said it lacked "wow" and gave it a quick thumbs-down. Some analysts said Nokia's reticence about dates, prices or carrier partners also did not help.
RBC Capital Market iterated its `sector perform' rating on the stock with a price target of $3, though analyst Mark Sue said that the phone has not lived up to its hype.
"The challenge is that the world is working on the 4th, 5th and 6th editions of their devices, while Nokia is still trying to move from chapter 1. It still has quite a bit to catch up," said analyst Mark Sue.
"People were looking for something that would dazzle. Most investors will view it as evolutionary, not revolutionary. Nokia has made some good progress, but investors were looking for quantum leaps. We didn't get that."