Nokia Corporation (ADR)(NYSE:NOK)’s launch of Lumia Windows Phone 8 handsets this holiday appears to be a great hit. Several reports have come out in the last few days that throw light on the high demand for the newly introduced flagship Lumia 920 in Europe and the US.
The NextWeb has reported that the Lumia 920 was out of stock with 2-week shipping times at Amazon and that AT&T only had the white model.
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Another report had mentioned that the Nokia Lumia 920 was doing pretty well in Europe also. Particularly in Germany, a number of retailer partners of Nokia have been facing Lumia stock-outs since the device became available earlier this month.
Owing to the initial good feedback after the launch of the Lumia, Nokia’s stock has increased almost 25% in the last week. While the stock-outs are a positive indicator of the pending demand that Microsoft and Nokia have managed to make before the Lumia launch and is in line with the long-term view of the company. Shareholders must be careful not to believe much into the news since there is no specific detail on the actual sales figures as of now.
Also, the coming months will be crucial for Lumia since Nokia will have to work hard to make sure that the demand does not die out after the initial euphoria so as to stage a turn in its smartphone business. There is, however, a small enhancement in Nokia’s handset business, together with its current turnaround in the wireless infrastructure joint undertaking with Siemens. This improvement could add much more value to the company.
Nokia’s strong start to its latest Lumia launch, particularly in the US, is a good launch-pad for the company to build it into a better success. The US smartphone industry is immensely important for handset manufacturers since success in this industry usually translates into optimistic customer feeling in other markets.