So Nokia’s first new Windows Phone device, the Lumia 800 has been available since the 16th of November and while first days sales looked promising, 6 days later the device does not appear to have the staying power Nokia would have liked.
UK carrier, Orange said pre-orders for the Lumia 800 have been the best of any Nokia phone. So surely you’d think that Nokia has a hit on their hands. Nokia continues to remain positive in their press releases, saying things like “…level of pre-orders, as well reaction in shops has been very positive…” but they aren’t reporting the aftermath of a week of sales.
James Faucette, an Analyst for Pacific Crest, has slashed his estimates of the Nokia Lumia 800 from 2 million to under 500,000 units sold. He says that shipments have been lower than predicted and sales so far have been disappointing.
Even Forbes has put in their two cents, stating that searches on Google have the interest in the Lumia 800 around the same level as the Nokia N8, which is sad when you consider that the N8 is running a dead OS and has been out for nearly a year.
While Nokia has yet to release any hard data on sales, other analysts like Pierre Ferragu of Bernstein Research, says he believes that the Lumia 800 is not competitively priced which is hurting sales when compared to Android and iOS devices.
Ferrague says he expects the Lumia 800 to be a flop:
“With no breakthrough innovation, we believe Nokia’s new phones are unlikely to get traction in a highly concentrated high-end,” he writes in a research note. “Second, we don’t believe Lumia phones are competitively priced. Third, we believe in economics of increasing returns for mobile ecosystems and judge rather unlikely that Windows can gain critical mass against Android and iOS. Fourth, we have seen evidences of lack of traction for the Windows operating system over the last 12 months and challenge the idea that the Nokia brand can make a meaningful difference today.”
If this data is true and the sales of Nokia’s device are disappointing and with no U.S. release for several more months, Nokia could be in for a world of hurt. Did Elop and the Finnish company make the wrong choice in Windows Phone? The hardware is certainly gorgeous, so what is the real reason for the drop off in sales, cost, OS, design or just lack of features? What do you think?