Nokia takes on US smartphone market

Nokia has unveiled its third Windows Phone, the Lumia 900, designed specifically for the AT&T LTE network in the US.

The Lumia 900 builds on the design of the Lumia 800, which was announced by Nokia in October. The handset has a large 4.3-inch Amoled ClearBlack display, compared to the 3.7-inch screen of the Lumia 800.

"The introduction of the Nokia Lumia 900 with AT&T is another significant milestone in the ongoing rollout of Nokia's global smartphone strategy," says president of Nokia Americas Chris Weber.

According to Weber, the announcement of the Lumia 900 signifies a “new dawn for Nokia in the US”.

Nokia worked closely with AT&T to bring the new handset to market and senior VP of devices for AT&T Jeff Bradley says: “Our powerful 4G network really amplifies the benefits of the Nokia Lumia 900. Together, we are working to supercharge the ecosystem around the Nokia Lumia 900 and the Windows Phone platform."

In October, Nokia CEO Stephen Elop said the company was planning LTE and CDMA products for specific markets.

Ovum's chief telecom's analyst, Jan Dawson, says the Lumia 900 represents Nokia's first serious step into the US with its Windows Phone line.

“This device signals several things: firstly, that Nokia is serious about the US, launching arguably the flagship Lumia device in the US before the rest of the world; secondly, that Nokia has the clout with Windows Phone to allow it to be first to market with an LTE device; and thirdly, that AT&T is now seriously into the business of offering LTE phones.”

Dawson says the marketing support that the handset will have from both Nokia and AT&T will give the Lumia 900 the best opportunity for a Windows Phone in the market to date.

“However, that's not to say it will be a blockbuster: the exact timing and pricing will be major factors too, and those have not been announced yet.

“While the Lumia 710 was announced earlier and launches this week, it represents a low-end offering and isn't the best advertisement for Windows Phone on Nokia. While a capable device, it lacks some of the features that will set Nokia apart in the Windows Phone space, but the Lumia 900 rectifies that,” says Dawson.

At the time of the announcement of the Lumia range in October, at Nokia World in London, IDC's senior VP for hardware, services, software research and consulting, Crawford del Prete, said the new devices from Nokia “put to rest the notion that Nokia cannot innovate in the Windows phone space”.

“Nokia has raised the bar with respect to design and manufacturing excellence, creating a product that will stand out in a very crowded field,” said Del Prete.

Other analysts remained sceptical, and director of research at telecoms analysis firm CCS Insight, Ben Wood, said at the time: "These devices are a good start, but the reality is that they are pretty much plain vanilla Windows Phone products.”

Wood predicted the “real fruits” of the Nokia and Microsoft partnership would be seen this year. “But it remains a Herculean task to recapture this lucrative market from Apple and Android."

In December, it was reported that following its European release, the Lumia 800 was struggling to win over consumers. A survey by Exane BNP Paribas found that just 2% of Europeans in the market for a smartphone said they would buy one.