The much-awaited brand new smartphones from Nokia Corporation (ADR)(NYSE:NOK), which will run on Microsoft’s Windows 8 software, were launched on Wednesday. But the date from when the products will hit the stores is not certain, which is why the shares of Finland-based Nokia plummeted after the launch.
The new phones – Nokia Lumia 920 and the mid-tier Lumia 820 was unveiled by CEO Stephen Elop at a press conference in
. These smartphones will be
functioning on high-speed fourth generation (4G) networks and will include
features like Nokia’s hi-tech mapping and location services. New York
The success of the new phones is essential for Nokia to establish its position once again in the smartphone market and will determine the future of the company as well. Nokia needs to overcome competition from giants like Apple and Google whose iOS and Android respectively, are currently dominating the smartphone market.
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More than a year back, Elop, who is formerly from Microsoft Corporation(NASDAQ:MSFT), took a huge gamble by doing away with Symbian, Nokia’s own software, and started incorporating Windows operating system in all Nokia devices. Handsets running on Windows have clicked with analysts, but have not worked with users that well, which is why it has not been able to secure much market share. This led to Nokia incurring a loss comprising billions of dollars and also watching its share price decline sharply.
Shares of the finished phone maker slumped 16% to $2.38, even as the launch was going on. However, Nokia has stated that details about the mobile phones being available for sale will be announced in the 4th quarter. According to the Wall Street Journal, Hakan Wranne, an analyst at Swedbank, has predicted that the new Nokia phones will be successful and the sales figures will be extremely promising before Christmas.