Tuesday, January 24, 2012

Lumia’s Successes and Challenges

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tdp2664 InvestorPlace Days before Nokia (NYSE: NOK ) announced its partnership with Microsoft (NASDAQ: MSFT ), in February 2011, an internal memo from the Finnish phone maker’s then-new CEO Stephen Elop to his employees was leaked to the press. Elop said that Nokia, still the world’s biggest mobile phone maker, was “ standing on a burning platform ” as the global market swiftly transitioned to smartphones. At the time, the partnership with Microsoft seemed a milquetoast move. It was too little effort to diversify too late on Nokia’s part. For Microsoft, it was a sign of desperation, evidence that it would do anything to get Windows phones on the market. Fast forward nine months. Nokia and Microsoft release their first Lumia smartphones in the U.K., India, and elsewhere around the world, testing the waters ahead of tackling the U.S. market. Did they fail as expected? Far from it. According to a report published on Tuesday by Bloomberg , Nokia and Microsoft sold approximately 1.3 million Lumia smartphones in the international market at the end of 2011. The figure isn’t exact—it’s an average of estimates from 22 analysts, whose early Lumia sales projections range between 800,000 and 2 million across November and December.



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