By PETER SVENSSON
AP Technology Writer
NEW YORK (AP) - Nokia
revealed its first smartphones to run the next version of Windows, a big
step for a company that has bet its future on an alliance with
Microsoft. Investors were disappointed, and Nokia's stock fell sharply
on Wednesday.
Nokia Corp.'s new flagship
phone is the Lumia 920, which runs Windows Phone 8. The lenses on its
camera shift to compensate for shaky hands, resulting in sharper images
in low light and smoother video capture, Nokia said. It can also be
charged without being plugged in; the user just places it on a wireless
charging pod.
Nokia also unveiled a
cheaper, mid-range phone, the Lumia 820. It doesn't have the special
camera lenses, but it sports exchangeable backs so you can switch
colors.
Nokia CEO Stephen Elop said
the new phones will go on sale in the fourth quarter in "select
markets." He didn't say what they would cost or which U.S. carriers
would have them. AT&T Inc. and T-Mobile USA have been selling the
earlier Lumia phones.
Investors seem to have
expected more specifics, or an earlier launch. After the announcement,
Nokia shares fell 45 cents, or 16 percent, to close Wednesday at $2.38
in New York. The stock is at its lowest levels since the 1990s.
Apple Inc. is expected to
reveal the iPhone 5 at an event in San Francisco next week, which means
the holiday quarter is going to be a tough one for competing
smartphones.
Nokia, a Finnish company,
revealed the new phones in New York. The American market is a
trendsetter, but Nokia has been nearly absent from it in the past few
years. One of Elop's goals is to recapture the attention of U.S.
shoppers.
Facing stiff competition
from Apple's iPhone and devices running on Google's Android software,
Nokia has tried to stem the decline in smartphones in part through a
partnership with Microsoft Corp. announced last year. It has moved away
from the Symbian operating platform and has embraced Microsoft's Windows
Phone software.
Nokia launched its first
Windows phones late last year under the Lumia brand, as the first fruits
of Elop's alliance with Microsoft. Those ran Windows Phone 7 software,
which is effectively being orphaned in the new version. The older phones
can't be upgraded, and they won't be able to run all applications
written for Windows Phone 8.
Nokia sold 4 million Lumia
phones in the second quarter, a far cry from the 26 million iPhones that
Apple Inc. sold during those three months. So far, the line hasn't
helped Nokia halt its sales decline: Its global market share shrunk from
the peak of 40 percent in 2008 to 29 percent in 2011, and it is
expected to dwindle further this year.
For Microsoft, the alliance
with Nokia is its best chance to get into smartphones again, where it
has been marginalized by the rise of the iPhone and then phones running
Google Inc.'s Android software. The launch of Windows Phone 8 coincides
roughly with the launch of Windows 8 for PCs and tablets. That launch is
set for Oct. 26.
"Make no mistake about it -
this is a year for Windows," said Microsoft Steve Ballmer, who joined
Elop, a former Microsoft executive, on stage.
Shares of Microsoft, which is based in Redmond, Wash., were unchanged at $30.39.
The new Windows Phones come
as Google and makers of Android phones have run into legal trouble,
which could slow the momentum of Android devices. A jury in Silicon
Valley ruled two weeks ago that some Samsung Android phones infringed on
Apple patents. The jury ordered Samsung to pay Apple $1.05 billion, and
Apple is seeking a ban in the U.S. on some Samsung devices.
U.S. phone companies are
also eager to build up Windows Phone as an alternative to the iPhone and
Android, to reduce the leverage Apple and Google have over them.
Android and Apple devices dominate in smartphones, with 85 percent of
the worldwide market combined, according to IDC.
Samsung Electronics Co.,
which has succeeded Nokia as the world's largest maker of phones, showed
off a Windows 8 phone last week. It didn't announce an availability
date either.
At Wednesday's event, Nokia
executive Kevin Shields demonstrated the wireless charging technology
by placing the phone on top of a JBL music docking station, which
charged it. Wireless charging has shown up in other phones, most notably
the Palm Pre of 2009. But Nokia is making its phone compatible with an
emerging standard for wireless charging, called Qi. That means the phone
can be charged by third-party devices.
The docking station also
played music from the phone, even though it wasn't plugged in. The music
was transferred from the Lumia's near-field communications chip, which
can connect automatically to other devices at short range. Coupled with
the right apps, NFC chips can also be used to pay for things in stores,
by tapping the phone to credit-card terminals.
File photo (MGN)
