Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Nokia's Stock Tanks After Windows 8 Phone Reveal

By

Nokia bet the house on the new Windows Phone, but investors just aren't impressed.

PrintPRINT
MINYANVILLE ORIGINAL Yesterday, Microsoft (MSFT) and Nokia (NOK) held a press conference finally revealing the design and features of the Lumina 820 and 920, with the hope that the pair would aid them in their struggles to gain a better presence within the fiercely competitive smartphone market. However, despite featuring interesting hardware and a unique look, investors must have expected more from the new phones, as the stocks for both companies began to sink almost immediately. Although Microsoft's loss is fairly minimal, an article from Sky News reported that Nokia's share price fell by 18% before "recovering" to around 15.90%. It continues declining today.

General consensus seems to be that Nokia's Windows Phone doesn't innovate enough to compensate for its different design. Nokia incorporated two major technological advancements to help it seem appealing: A wireless charging component, and the new "Pureview" camera technology, which helps reduce blur in motion, but investors don't seem to believe that it will be enough to bridge the gap between the Lumina phones and the upcoming iPhone 5 (AAPL).



What may have also hurt Nokia is its inability to offer much basic information about the phone, such as its prices or which US carriers would have them. All Nokia CEO Stephen Elop would offer was that the phones would go on sale in the fourth quarter in "select markets." Naturally, investors have taken that lack of news as evidence of bad news, as the rumor of an exclusive deal with AT&T (T) might have been enough to increase confidence.

This failure spells bad news for Nokia since the company all but bet the house on its partnership with Microsoft. The once mighty phone giant is on its last legs -- and if this venture goes poorly, it may not survive another round. Microsoft is no doubt disappointed, too; as mentioned in an earlier article, the software company has been doing everything it can to gain ground in the mobile market, and hoped to capitalize on Apple's war with Android (GOOG) and the negative press that is slowly growing about the iPhone manufacturer because of it.

Still, things don't look good right now for either company. Motorola is also unveiling new Android technology today. Although the technology may not be as innovative, it seems to be piquing investors' interests, particularly with the announcement of a $99 Razr. As September 12 and the Apple press release slowly makes it way here, Microsoft and Nokia should start praying for a miracle if they want to get ahead.
< Previous
  • 1
Next >
No positions in stocks mentioned.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE