Nokia Corporation (NYSE:NOK) seems to have a lot riding on the success of its Lumia lineup of Windows smartphones. Reports from analysts on sales of Lumia devices have had a strong see-saw effect on the battered stock price of the company over the last few days.
Nokia’s US shares experienced a strong drive during the Thanksgiving week, shooting up 28% to $3.56, which was the company’s highest since May. Earlier this week, a Dow Jones report revealed that the Lumia 920 flagship phone had sold out in Germany. It is running on the second rank on Amazon among mobile phones available with two-year agreements.
A report from the brokerage MKM Partners also took note of a rock-solid release of the Lumia 920 at AT&T in the US, even though it kept up a Sell rating on the shares, quoting its confidence that the smartphone will not do well enough to reinstate the company’s business to productivity.
Nokia shares have been in the red this week, losing over 5% on Monday and 3% by Tuesday afternoon.
Tavis McCourt from Raymond James mentioned in a note on Tuesday that early demand for the Lumia 920 seems to be solid, but he did add the caution that less supply appears to be a problem across the Windows Phone ecosystem. He also took note of the main challenge for the company, which happens to be maintaining the momentum.
McCourt said that when AT&T had released the Lumia 900 in April, it was consistently among the Amazon 10 best sellers for a span of two months. It was pushed aggressively by AT&T, however, the demand had waned away with the growth of competition. Nokia has definitely put together a concrete release for the 920, just like it had done for 900, but he believes that follow-up after the early advertising campaign and carrier focus will be tougher than making the initial demand.