The tech community hailed the launch of Nokia
Corporation (ADR)(NYSE:NOK)’s new phones but the investor community's response
was to sell off the shares of the European company.
Shares in Nokia trading in New York fell nearly 16
percent to $2.38 while its shares in Helsinki fell nearly 13 percent to 1.90
euros after the launch event. The stock has risen more than 50 percent in the
last six weeks on anticipation that the new smartphones will signal a revival
in the fortune o the company.
On Wednesday, Nokia had unveiled its brand new two
Lumias - Lumia 920 and Lumia 820 - running on Windows Phone 8 operating system.
The phones are not expected to be on store shelves
until November which gives the company very little time to notch up sales in
the financial year. Analysts complained that a limited fourth quarter launch
would be a big disappointment for consensus earnings' estimates for the
company.
Can NOK Rebound
Soon? Find Out Here
The Finnish handset maker did not set a clear launch
date for the phones nor were there any indications of the price. These added to
the uncertainty about its potential earnings from the devices.
Launching the phones in New York City, Nokia referred
to the 920 as the flagship product for Windows Phone 8. Microsoft boss Steve
Ballmer who was also present at the event said that "over the course of a
month or two, we'll see the rest of the windows Phone 8 software."
The new mobile operating platform from Microsoft is
not expected before the middle of October and by that time Apple's new iPhones
would already have been rolling off store shelves.
Apple is launching its new iPhone in an event
scheduled for September 12.
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