Lumia reception does not bode well
European consumers show little interest in Nokia's first smartphone using Microsoft's Windows Phone software.
According to a survey by Exane BNP Paribas only 2.2 percent of surveyed buyers firmly intending to purchase the Lumia, Nokia's first flagship Windows Phone is pretty much doomed. Analyst Alexander Peterc slashed his view on sales of the Lumia to end-users to just 800,000 from its initial "ballpark estimate" of 2 million. In other words about the same as with launch-quarter sales of between 3.5 million and 4 million for Nokia's previous flagship, the N8.
Exane BNP Paribas cut its price target on Nokia shares to 3.30 euros from 3.70 euros and stuck to its "underperform" rating on the stock. There is a lot riding on both Nokia and Microsoft doing well out of their partnership together. If it fails then Microsoft will lose the mobile market and Nokia will go under.
The brokerage surveyed 1,300 consumers in the five markets where the Lumia 800 had gone on sale in the week started December 5, but narrowed the sample to 456 who had declared an intention to purchase a smartphone in the next month.