Nokia sales estimates slashed after news of Windows Phone 8

Analysts at Nomura wrote in a note to investors that they have cut their estimates on Nokia's revenue next year down to €6 billion (US$7.5 billion). The analysts initially anticipated Nokia posting €10.9 billion in sales next year.

(Credit: Nokia)

According to Bloomberg, which obtained the note, the analysts said that the revision is due to Microsoft's announcement that Windows Phone 7-based devices won't be upgradeable to Windows Phone 8. Instead, the handsets will receive an upgrade to Windows Phone 7.8 — an operating system version that, the analysts said, will be in less demand than Microsoft's upcoming platform.

The impact on unit sales will be just as major, according to the analysts, who cut Nokia's Windows Phone unit sales down to 34 million handsets for next year; 41 per cent lower than they had previously predicted, Bloomberg reported.

So far, Nokia has kept a brave face on the news. Just last week, the company's senior vice president of program and product management, Kevin Shields, spoke with The Verge about the lack of an upgrade path, and asserted that the issue won't be nearly as concerning as some think.

"I think that ultimately, your typical customer probably isn't all that aware of this upgrade thing," Shields told The Verge. "I definitely think with products like the Lumia 900, where a consumer walks in and buys that product, they're getting great value and they're getting a great offering that's gonna have a long lifetime of innovation."

But not everyone agrees. As CNET executive editor Roger Cheng pointed out last week in an op-ed piece detailing Nokia's Windows Phone 8 troubles that the company's Lumia 900 is all but obsolete already.

"Well, it's clear now everyone should have waited for the Windows Phone 8 version of the Lumia," he wrote. "Rather than a flagship phone, it now appears more like a stopgap to something better."

Nokia has so far not unveiled any Windows Phone 8 handsets. However, based on the company's working relationship with Microsoft, those devices will likely launch around the time of, or soon after, the launch of Windows Phone 8.

Via CNET



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MitchellT posted a comment   

snobby **** start watching iOS and android for once and see why they are so popular, apple ripped off android, why cant you?




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