In a move to claim the lost market share, Finnish company announced plans to come up with a new smartphone, using Microsoft’s Corporation (NASDAQ:MSFT) latest Windows Phone 8 software. If rumors are to be believed, Nokia’s new smartphone could be launched before their rival, Apple Inc. (NASDAQ:AAPL), launches the much awaited iPhone 5.
On behalf of Nokia Corporation (NYSE:NOK), Chief Executive Stephen Elop made the promise to unveil the new smartphone to regain the lost turf to Apple Inc. (NASDAQ:AAPL) and Samsung.
Elop was poached in from Microsoft in 2010, to help Nokia Corporation (NYSE:NOK) face competition from Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94). It was Elop’s strategy to stick with Microsoft software, despite the limited success of Windows Phones so far. Nokia Corporation (NYSE:NOK) replaced its home-grown Symbian software, to use Microsoft’s windows in early 2011.
Elop told the reporters “I don’t think about rewinding the clock and thinking about competing elsewhere,” and added “In today’s war … (between) Android, Apple, and Windows, we are very clear, we are fighting that with the Windows phone.”
For the second quarter Nokia Corporation (NYSE:NOK) posted a loss of 1.53 billion euro’s and was well behind in sales, with 4 million Windows phones, compared with Apple’s sales of 26 million iPhone and Samsung’s 50 million smartphones.
Earlier in the day, S&P downgraded Nokia’s rating to BB- with a negative outlook, blaming its second-quarter results and outlook for the third quarter, which was weaker than expected. Nokia however, shrugged off the rating, citing it has sufficient liquidity and was conserving cash.
Nokia CFO, Timo Ihamuotila, commenting about the rating, “As we continue our transition, we are applying a strong focus on cash conservation, while simultaneously reducing our operating costs and making our operating model stronger and more agile.”
Discounting the news from Elop about the launch of a windows based smartphone, Nokia shares, which have been trading near all-time lows, jumped sharply.