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.
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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.