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New Lumia phones underwhelm


Johannesburg, 06 Sep 2012

Analysts say new Windows Phone 8 devices from Nokia and Microsoft lack the “wow” factor. Investors were also less than impressed with the launch, with Nokia's shares falling 13% as a result - the company's biggest single day loss since June.

While the Lumia range has been praised for its hardware and design in the past, the handsets have been struggling to gain any significant traction in the highly-competitive smartphone market. Many analysts said slow Lumia sales could be attributed to the fact that consumers were holding out for the new devices - which have been billed as both Nokia and Microsoft's last chance at securing a place in the smartphone market.

The Lumia 920 is Nokia's new flagship Windows Phone 8 handset and includes the much rumoured PureView technology in its 8.7MP camera - a feature Nokia is positioning as a key differentiator.

Nokia explains: “Using advanced floating lens technology, the camera in the Nokia Lumia 920 is able to take in five times more light than competing smartphones, without using flash, making it possible to capture clear, bright pictures and video indoors and at night. It also compensates for hand movement while the photo is being taken.”

According to Nokia's executive VP of smart devices, Jo Harlow, the PureView technology makes it possible for a smartphone camera to take the kind of images usually only seen on a standalone SLR camera.

Nokia has, however, come under fire for posting “misleading” PureView ads online. A video ad that coincided with the launch event showed two identical shots of the same scene - one jerky and the other smooth - implying that the smooth shot was taken on a Lumia 920. This was, however, not the case. Responding to the public outcry, Nokia posted a formal apology on the Nokia Conversations blog, as well as a new video posted to YouTube showing footage actually shot on the 920.

Spokesperson Heidi Lemmetyinen said: "Of course, hindsight is 20/20, but we should have posted a disclaimer stating this was a representation. This was not shot with a Lumia 920. At least, not yet. We apologise for the confusion we created."

Controversy aside, the Lumia 920 also has a larger 4.5-inch screen and features new augmented reality technology in the form of Nokia City Lens. “By pointing the camera at a city street, City Lens overlays information about restaurants, shops, hotels and more on the surfaces of buildings, for the most intuitive way to explore surroundings.”

The Lumia 820 is positioned as a mid-range smartphone and features the same look and feel as the other Lumia handsets, but also has an exchangeable shell design. The handset is available in red, yellow, grey, cyan, purple, white and black. The Lumia 920 is available in yellow, grey, white and black.

Lack of “wow”

Both phones have LTE and HSPA+ functionality, as well as wireless charging capabilities. Pricing and rollout dates were not confirmed by Nokia - something analysts criticised the Finnish company for. Reuters quotes CEO of telecommunications consultancy Northstream, Bengt Nordstrom, as saying: "It is impossible to assess this launch without price and roll-out info. This is disappointing.”

The general consensus from analysts was that the phones lacked the so-called “wow” factor. RBC analyst Mark Sue says: "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.

"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 one. It still has quite a bit to catch up.”

IDC analyst Aman Bajaj says of the new Lumia devices: "The timing of the launch, just before the eagerly anticipated iPhone 5 is set to launch and soon after consumers refreshed with a new Samsung Galaxy SIII or Galaxy Note, is not going to make it any easier for Nokia.”

Consumer expectations are notably at an all-time high, and Telsyte telecommunications analyst Foad Fadaghi says even Apple may struggle to meet the high benchmark it has set with previous releases of the iPhone.

Please click here for the full specifications of the Lumia 920 and Lumia 820.

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