independent

Saturday 25 May 2013

Phone wars Nokia fights back against big loss of market share

Nokia chief executive Stephen Elop speaks at the launch of the new Lumia 920 phone with Microsoft Windows 8 operating system at an event in New York yesterday. Photo: Reuters

Nokia has 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.

Nokia's new flagship phone is the Lumia 920, which runs Windows Phone 8. The lenses on its camera 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 does sport changeable backs so you can switch colors.

The 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 last few years.

One of chief executive Stephen Elop's goals is to recapture the attention of US shoppers, many of whom buy iPhones or Android devices instead.

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' by the new version. The older phones cannot be upgraded nor can they run Windows Phone 8 applications.

Nokia sold four million Lumia phones in the second quarter, a far cry from the 26 million iPhones sold by Apple. So far, the Lumia line hasn't helped Nokia halt its sales decline. Its global market share shrank from a peak of 40pc in 2008 to 29pc in 2011 and is expected to dwindle further this year.

The price and availability date of the new phone weren't immediately available.

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.

At the event, Nokia executive Kevin Shields demonstrated the technology by charging the phone on a JBL music docking station and even 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 items in stores by tapping the phone on card terminals. (AP)

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