Stephen Elop, Nokia CEO
Another bad day for Nokia yesterday, with the shares dropping under €2 after the unveiling of a new range of Windows equipped Lumia phones which the company hopes will reverse its precipitous decline in the smartphone arena (down over 40% in the last quarter).
With the Lumia smart phones shipping into selected markets in the fourth quarter, investors saw this as a delay in the roll out and with the adoption of the Microsoft operating system this is very much a last throw of the dice for the Finnish company. Investors were left underwhelmed by the new technology on offer with significant scepticism that Google Android and IPhone users would migrate en masse back to Nokia given what they have on offer.
Unfortunately for the ex-Microsoft man and Nokia CEO, Stephen Elop, expectations for the imminent arrival of Iphone5 from Apple seems to be generating far more buzz. Though the Lumia 820 and 920 have been described by Nokia and Microsoft as the “world’s most innovative” phones, consumers are salivating at the prospect of the new Apple device rather than Nokia’s work man like range. The integration of the Iphone with the Apple ITunes store with its associated App’s is proving a killer advantage in this competitive arena.
The Lumia 920 has an 8-megapixel camera and a high-resolution screen, while the 820 will have a lower spec camera but users will be able to swap battery covers and expand its internal storage capacity. Both devices allow wireless charging that will enable consumers to recharge their handsets using wireless charging pads at home or while travelling.
The performance of the new Lumia range will be closely watched at the end of 2012 into early 2013 and a further stumble may signal the death knell of this once great company. If things don’t work out, the options for Elop apart from an outright fire sale seem limited. A tense time indeed for Nokia executives, employees and shareholders!
Contrarian investor UK