Nokia with First Windows Phone Handsets

KOMPAS.com - Nokia yesterday unveiled a new crop of smartphones that could put the company back in the smartphone race with rivals iPhone and Android. It could also mark a turnaround for Microsoft's unpopular Windows Phone 7 software.

Nokia CEO Stephen Elop unveiled the company's new partnership with Windows Phone 7 today in the form of the Nokia Lumia 800 - a hi-tech, mid-priced handset running the latest version of Microsoft's operating system.

The phone costs £364. The cheaper, lower specced Lumia 710 model will cost just £234. Both will go on sale across Europe in November.

The pricing in particular could be crucial in putting Microsoft's Windows Phone 7 back in competition with its smartphone rivals. Microsoft CEO Steve Ballmer said that the Windows giant would cut prices to drive sales.

The partnership is predicted to capture 12.3 per cent of the European market for Microsoft over the coming year, said analysts Strategic Analytics this week.

'We believe that the world is ready for something new,' said Elop.

'I am excited to introduce you to the Nokia Lumia 800,' said Elop to loud applause. 'Our first phone built on the Windows Phone platform - the first ever that embodies and complements the design of Windows Phone. Lumia is the first real Windows Phone.'

'Eight months ago, we shared our new strategy and today we are demonstrating clear progress of this strategy in action. We're driving innovation throughout our entire portfolio, from new smartphone experiences to ever smarter mobile phones,' said Elop.

The phone will be available on networks such as Vodafone. It offers a larger screen than iPhone, a fast processor, and built-in 3D Xbox games.

Despite largely positive reviews and feedback for its simple approach and clean, simple interface, Microsoft's Windows Phone 7 software has yet to capture a large amount of market share.

Analysts Gartner say that Windows Phone 7's market share in the second quarter of this year was just 1.6 per cent. Windows Phone division chief Andy Lees said the Nokia devices were a huge development for Microsoft.

'Nokia brings state of the art industrial design and outstanding global distribution,' said Lees, 'Windows Phone brings it to life with an experience that puts people at the center.'

He said Google, maker of the popular Android operating system for mobile phones, was 'very nervous' at Microsoft's entry into the market, even though Windows Phone has a long way to go before it rivals more established products.

Elop also launched a new Asha series of phones running Nokia's existing Symbian operating system - designed to target what Nokia describes as 'the next billion'.

Elop said he was confident that the new handsets would help Nokia target 'a billion' urban consumers in emerging markets such as Mexico and India.

Elop said the distinction between 'smartphone' and other 'feature phones' was becoming blurred - and that the company's focus would be on providing connected devices to consumers in these markets.

The handsets were unveiled alongside new online services from Nokia - such as a 'cloud' storage service allowing users to store 25GB of data such as pictures and music on Nokia servers, rather than within the phone itself.

Last week, Microsoft CEO Steve Ballmer was dismissive of rival Android and said the only 'real' competition was Apple.

Windows Phone 7 is 'simpler' than Android - and the Google software's only advantage is being cheap, said Ballmer. He also said Apple's Siri voice software was 'not new'