Nokia Corporation (ADR) (NYSE: NOK) on Wednesday unveiled two new smartphones that will run on Microsoft Corporation’s (NASDAQ: MSFT) latest operating system. However, shares of the Finland-based company plunged on uncertainty over when the devices will be available for sale.
Looking to Fight Back
Nokia CEO Stephen Elop on Wednesday unveiled the flagship Lumia 920 and the mid-tier Lumia 820 at a press event in New York City. The new smartphones will run on Microsoft’s Windows Phone 8 operating system. The devices, which will work on high-speed fourth generation (4G) networks, feature NOK’s advanced mapping and location services.
With the new devices, NOK is looking to fight back in the smartphone market. NOK has struggled to compete in the smartphone market, which is dominated by Apple Inc.’s (NASDAQ: AAPL) iPhone and smartphones operating on Google Inc.’s (NASDAQ: GOOG) Android operating system.
The success of the new phones is crucial for Nokia’s future. CEO Elop had taken a risky decision almost 18 months ago by scraping NOK’s own software, Symbian, and use MSFT’s Windows operating system for its devices.
Although NOK handsets operating on Windows operating system have been well received by analysts, they have failed to capture market share. Meanwhile, the company has lost billons of dollars and seen its share price plummet. The company is hoping for a turn around with the new phones.
Shares Plummet on Uncertainty
Even as Nokia CEO unveiled the new phones, the company’s shares fell more than 11% in mid-day trading on Wednesday. The stock tumbled on uncertainty over when the new devices will be available for sale. Nokia said that it will provide details on availability of the new phones in the fourth quarter.
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