1) Nokia unveiled its new Lumia smartphones, the Lumia 920 and 820, but investors were disappointed as the phones failed to impress and Nokia's stock plummeted 13%. 2) While the Lumia phones have improved features like bigger screens and better cameras, analysts said they were evolutionary rather than revolutionary improvements and lacked the "wow factor" investors were hoping for. 3) With its financial losses, Nokia needs a hit with these new Lumia phones to regain market share from Apple, Samsung, and Google, but the phones did not appear to pose a significant threat to the dominant iPhone and analysts were skeptical they would dramatically increase Nokia's market share.

1. Nokia Lumia 920, Lumia 820 disappoint investors
Helsinki:
Nokia shares plummeted 13 per cent after its new Lumia
smartphones failed to impress investors looking for
transformational handsets to rescue the struggling Finnish
company.
Nokia and its partner Microsoft Corp showcased the Lumia 920
phone on Wednesday in what may be their last major shot at
reclaiming market share lost to Apple Inc, Samsung Electronics Co
Ltd and Google Inc.
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Microsoft and Nokia hope the device - sporting bright colors, a
bigger screen and technology that reduces blur and shakiness in
pictures and video - will become a potent weapon in an escalating
global war to dominate the mobile industry. But investors said it
lacked "wow" and gave it a quick thumbs-down. Some analysts
said Nokia's reticence about dates, prices or carrier partners also
did not help.
Nokia shares traded in Helsinki began sliding midway
through the New York launch and ended down 13 per cent at 1.99
euros, their biggest single-day loss since June. Nokia's U.S.-listed
stock closed down nearly 16 percent at $2.38. The stock had
gained 67 percent since mid-July as anticipation built ahead of the
Lumia's unveiling. The Lumia was the first in a flurry of planned

2. mobile-device launches expected ahead of the holiday shopping
season.
Google's Motorola Mobility showed off three new
smartphones based on Android software later on Wednesday.
Verizon Wireless the top U.S. mobile provider committed to sell all
three of the Motorola phones. Amazon.com Inc will unwrap its new
Kindle Fire tablets on Thursday and Apple is expected to unveil the
latest version of its seminal iPhone on September 12. "The
challenge is that the world is working on the 4th, 5th and 6th
editions of their devices, while Nokia is still trying to move from
chapter 1. It still has quite a bit to catch up," said RBC analyst
Mark Sue. "People were looking for something that would dazzle.
Most investors will view it as evolutionary, not revolutionary. Nokia
has made some good progress, but investors were looking for
quantum leaps. We didn't get that." Many of the industry analysts
who saw the phone up close in New York deemed it a solid device
with a few differentiating features. But it did not push the envelope
as Nokia CEO Stephen Elop had promised. The device runs on the
latest Windows Phone operating system, which Microsoft - the
world's largest software maker - hopes will rival Apple's iOS and
Google's Android to become a third mobile platform.
Nokia announced no partnerships with wireless service
providers, leading some analysts to worry this was a sign of weak
carrier support. The Finnish handset maker said it would announce
pricing and roll-out dates for the new Lumia later on a country-by-
country basis. "It is impossible to assess this launch without price
and roll-out info. This is disappointing," said Bengt Nordstrom,
CEO of telecommunications consultancy Northstream. For
Microsoft, successful Lumia sales could convince more handset
makers and carriers to support Windows Phone 8, which promises

3. faster performance and a customizable start screen. Samsung last
week became the first to announce a smartphone running that
software, which it said it would begin selling as early as next
month. Niike Air Max Tn
If the new phones do not appeal to consumers, it could
spell the end for money-losing Nokia and deal a serious blow to
Microsoft in its attempts to regain its footing in the market. "We're
working with our carrier partners to finalize our plans," said Jo
Harlow, executive vice president of smart devices for Nokia.
Windows phones have captured only 3.7 percent of the global
smartphone market, according to Strategy Analytics. Asked about
estimates that Windows phones might account for 10 percent of
the market by the end of 2013, Harlow said: "With momentum, if
we're at 10 percent at the end of 2013, I'd be a happy girl."
Ecosystem warriors Nokia badly needs a hit. It has logged more
than 3 billion euros ($3.8 billion) in operating losses in the past 18
months, forcing it to cut 10,000 jobs. Its share of the global
smartphone market has plunged to less than 10 percent from 50
percent during its heyday, before the iPhone arrived in 2007. The
Lumia 920 - billed as the flagship Windows phone - uses
"PureView" and floating-lens technology for its 8.7 megapixel
camera to reduce blurring and shakiness from hand motion, and
has wireless charging capability.
Powered by Qualcomm Inc's Snapdragon processor, it
comes with augmented reality technology that lets users see
details of their surroundings through the camera. And it sports a
bigger, brighter, 4.5-inch screen than Nokia's previous
smartphones, taking a page from rivals such as Samsung, which
has backed larger displays. Attendees at the New York event did
not see the Lumia as a significant threat to the iPhone, the device

4. that revolutionized the mobile industry and popularized the model
of a third-party developer "ecosystem," today considered pivotal to
the success of any operating system. Part of the reason for the
limited success of Windows phones is that they support only
100,000 or so apps, compared with about 500,000 or more for
Android or iPhones. Apple's and Google's entrenched positions -
where consumers have already invested heavily in apps and
content - discourages switching to a new mobile system. Windows
Phone 8, however, might have several factors in its favor. It is
similar to the Windows 8 desktop and tablet software to be
released October 26, making it easier for developers to write apps
for both.
Microsoft hopes this will boost the platform's popularity.
"The big difference versus Android is that there is a big Microsoft
developer base that will catch on quicker, once there is a sufficient
customer base," said Magnus Jern, founder and chief executive of
Barcelona-based Golden Gekko, which has created Windows
Phone apps for Heathrow Airport and for Yellow Pages in many
European countries. Many developers already working on iOS and
Android may look to support Windows via HTML5 - a Web
programming standard intended to work across different mobile
platforms - to avoid having to fund a third or fourth development
team. "HTML5 apps require less skilled resources to achieve a
minimum level of service. And although it's a compromise, it works
and is usually an acceptable compromise," Jern said. The new
Lumias could also benefit from the continuing decline in Research
In Motion Ltd's BlackBerry and from a recent legal setback for the
Android operating system.
A California jury decided last month that some of
Samsung's hot-selling Android smartphones copied features from

5. the iPhone, which might result in import bans and drive handset
makers to put more resources into making Windows-based
phones. But for Nokia and Microsoft to exploit that window of
opportunity, they must first win over consumers, who so far have
shown little enthusiasm for Windows smartphones. "If you were
looking for an iPhone knock-out punch, this isn't it. That's not
going to happen with one product," said Ross Rubin, an analyst at
Recticle Research.
Nokia