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9/6/2012
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Nokia Windows Phone 8 Devices Arrive With Thud

Nokia's shares hammered after analysts were underwhelmed by launch of Lumia 920 and Lumia 820 smartphones.

Windows Phone 8 Preview: A Visual Tour
(click image for larger view and for slideshow)
Windows Phone 8 Preview: A Visual Tour
Nokia's stock fell sharply Wednesday after the company's widely-hyped launch of smartphones based on Microsoft's Windows Phone 8 operating system drew mostly barbs from industry watchers, who criticized the companies for failing to disclose full details about the devices.

Nokia shares fell 18%, to $2.38, in trading Wednesday after analysts pilloried the launch event, which saw the introduction of the Lumia 920 and the Lumia 820. Analysts had two main issues with the launch--that it was light on details, and that what was shown was underwhelming.

"Investors wanted more substantive changes," wrote Argus Research analyst Jim Kelleher, in a note.

Nokia introduced two devices at the New York City event—the "flagship" Lumia 920 and the Lumia 820.

[ Microsoft is revamping much of its product line. Read 8 Microsoft Changes For Office.com, Cloud Product Users. ]

Both are the first, publicly demonstrated devices to carry Windows Phone 8, which offers support for advanced features like quad-core processors, which are not found in the new Nokia phones.

Both phones feature a 1.5-GHz Snapdragon S4 dual-core processor, cameras with Carl Zeiss optics, and wireless chargers. The 920 generally carries higher specs all around. It sports a 4.5-inch display, compared to 4.3 inches for the 820, 32 GB of storage (compared to 8 GB) and PureMotion HD+ display technology (compared to the 820's ClearBlack OLED display).

But most analysts saw the devices as "me too" entries that, while comparing favorably to the features on the iPhone and higher-end Android phones, were not sufficient to make users switch from the more established, rival platforms.

"We believe Nokia will struggle to regain sufficient market share with Windows [Phone] 8 devices to offset increasing pressure on its Mobile Phone business from low-cost Android devices in 2013," said Deutsche Bank analyst Kai Korschelt, in a research note published after the launch. Deutsche cut its rating on Nokia's stock to a sell.

According to some analysts, consumers just aren't buying into the Windows Phone platform, which eschews the standard, icon-based GUI in favor of a screen that's subdivided into squares that Microsoft calls Live Tiles. The tiles display photos and real-time updates from social networks, email, IM, and other services. In Windows Phone 8, Microsoft shrunk the tiles so users can see more of them on the screen at a given time.

"The specs are competitive, with Nokia's focus on the camera/imaging technology a highlight. However, hardware hasn't been Nokia's issue; generating interest in Windows has," wrote Oppenheimer & Co's Ittai Kidron.

Some market watchers were also troubled by Nokia and Microsoft's refusal to specify a shipping date or prices for the new phones. Carrier agreements also were not disclosed. "Nokia must announce major carrier partnerships, expand its allure with consumers, while differentiating in what's likely to become an even more crowded sector. Market competition remains fierce," said RBC Capital analyst Mark Sue, in a note.

Nokia shares continued to fall Thursday, off 2.31%, to $2.33, in early trading. Microsoft was faring better. Its shares were up 1.88%, to $30.96.

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DumbPhoneUser
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DumbPhoneUser,
User Rank: Apprentice
10/5/2012 | 6:32:00 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
The Nokia 920 is something to behold. Simply put, this is the FIRST combination of capabilities that will move me to carry a paperback-sized phone. :) Prior to this point, I was committed to a phone that would fit in a small shirt pocket, and live comfortably (and safely) in the back pocket of my jeans.

But with the all-fronts technological superiority** of this Nokia 920, coupled with its native support for Excel, I am ALL IN. CANNOT WAIT - get this device to me! (Yes, it appears Apple booped the pooch with iPhone 5 - so I'm happy to have to wait for the 920 until it's ready.)

** Image stablization 8.7 MegaPxl, super low-light quality photos from PureView, cable-free charging/cable-free music hookup, larger screen PLUS higher pixel density than any Apple Retina phone available including "5", (Maps that work, no-purple photos! :), gloves-compatible touch screen (I Ski), Mac/PC shared-cloud 7GB Skydrive free (expandable for fee), plus 32GB RAM standard, 1.5GHz dual core, scratch-free polycarbonate body/gorilla glass screen, and yes, a real, live office-productivity suite. Yes, I do think the Live Tiles is a true innovation after seeing it live. Yes, I've used iPhone and iPad (way too much for my preference). There is still the momentum of the Crowd (that just doesn't always work), but the Galaxy 3 deserves its success, and the 920 will go beyond THAT. My next question - willl there be a Bluetooth keyboard to use with this Nokia 920 device - truly a hybrid tablet-phone !?!
Yeomandroid
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Yeomandroid,
User Rank: Apprentice
9/17/2012 | 4:24:59 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
This is a ridiculous article. Most people are eager for the Lumia 920 and are more underwhelmed by the boring iPhone 5. Let the analysts speak out because they clearly are guessing.
hohum
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hohum,
User Rank: Apprentice
9/13/2012 | 11:09:15 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
Maybe thats when the HTC case will ban Apple products in the US?

It is funny how nokias new phones have loads of new features and are
a great innovation compared to other current offerings.
And yet the lies from Media continues

ANON1237925156805
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ANON1237925156805,
User Rank: Apprentice
9/6/2012 | 8:44:06 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
I think that the thud was the dropping stock price. Too bad that you only get one chance to make a first impression because my guess is that these are nifty devices that would be well worth owning. Both Nokia and Microsoft need to look under their feet to see the ice cracking.

Vaporware won't save Nokia now nor gain Windows 8 mobile the hearing it deserves. Rather than beating the iPhone launch they'd have been better served to look for a Steve Jobsian personality on their team to put together a knockout presentation that fully showed off the OS on the devices and included pricing specifics, deliverable dates and carrier.
RobMark
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RobMark,
User Rank: Apprentice
9/6/2012 | 6:09:11 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
I think the Win8, XBox, and Office ties will help a lot going forward. MS will not let Nokia fail, if it comes to it, MS will buy or keep Nokia going one way or the other. Nokia is safe as a company unless other WP8 phones start selling in large volumes and Nokia's do not.
AustinIT
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AustinIT,
User Rank: Apprentice
9/6/2012 | 4:57:01 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
I completely agree with you. And, I've said many times elsewhere that Nokia/MS had better get their marketing game together. Yesterday's event proved once again that they cannot communicate effectively... missing the most vitally important part of their strategy to gain a seat at the table.

The platform itself is great and getting better all the time. However, being late to the game means you now have to win over more converts as well as first time buyers. A task that is increasingly hard to do...
Crunchy Frog
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Crunchy Frog,
User Rank: Apprentice
9/6/2012 | 4:07:16 PM
re: Nokia Windows Phone 8 Devices Arrive With Thud
This is simply not a viable headline. It can't be said that the devices are or will fail simply because of uncertainty in financial markets. I will agree that the launch seemed out of order in that Nokia should have waited for Microsoft to launch WP8, and have carrier and pricing availability at their launch party. Once people can get their hands on these, I believe that they will do fairly well and steadily grow in popularity. It would be great if Microsoft would launch WP8 early instead of late October.
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