Nokia (NOK) recently launched their fourth Lumia series of handsets called Lumia 610 affordably priced at $254. The new series of handsets is mainly targeted toward the youth of the society. The new phone is expected to hit the stores in the second quarter of fiscal 2012.
The new low-priced Nokia Lumia 610 provides easy access to popular Xbox Live games, supports Nokia Maps, Nokia Drive, Nokia Transport and Nokia Music. One can also gain access to more than 55,000 applications available in the Nokia OVI store through the new device.
Moreover, the new Lumia handsets will benefit the young population not only to access different social network sites but also to maintain a single address book rather than maintaining different contact information in email, Facebook, Twitter and other social network sites.
Earlier, in November last year, Nokia launched their first Windows-based smartphones called Nokia Lumia 800 and Nokia Lumia 710. At the end of fiscal 2011, the company sold more than 1 million handsets. Moreover, the company plans to ship the latest Lumia phones in the lucrative markets of China and Latin America from the second quarter of fiscal 2012.
Nokia plans to launch a huge array of products in the end of second quarter of 2012. During that period, the company is planning to ship their firstLTE-based Window smartphone called Nokia Lumia 900. The company also plans to launch their next-generation tablets based on upcoming Windows 8 operating system. Such devices coupled with other product launches will certainly help the company to gain market traction going forward.
Recently, the company also launched HD camera centric smartphone called Nokia 808 PureView that features 41 megapixel camera. Such innovative product launch will give stiiff competition to camera manufacturers like Canon, Inc. (CAJ) and Nikon Corp.
We believe that continuous loss of market share coupled with stiff competition from Android-based smartphones and Apple Inc’s (AAPL) iPhones are headwinds for the company going forward.
However, increased shipments of Nokia’s dual-sim handsets in the emerging nations coupled with aggressive cost reduction initiatives implemented by the company will act as growth catalysts in the forthcoming quarters. We, thus, maintain our long-term Neutral recommendation for Nokia.
Currently, Nokia has a Zacks #3 Rank, implying a short-term Hold rating on the stock.
Based in Espoo, Finland, Nokia Corporation is the largest mobile phone maker of the world. The company also provides Internet services, comprehensive digital map information, and equipment, solutions and services throughout the world.
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