Checks at stores currently offering the new Nokia Corporation (BIT:NOK1V) (NYSE:NOK) Lumia 920 revealed that the flagship Lumia line was off to a solid start in most parts of the market. Although Nokia is managing the initial limited launch of its Lumia 920 incredibly well, MKM Partners is inclined to believe that the Lumia line is still far from making significant inroads into the market. MKM Partners is out with a new report today titled, ‘Checks Suggest Solid Lumia 920 AT&T Launch But Turn Around Still Long Shot.’
According to the MKM’s report, the Lumia 920, which was chiefly placed at AT&T Inc. (NYSE:T), alongside other retail outlets, kicked off to a solid start because of its highly subsidized $99 price point and the aggressive Windows 8 Phone marketing. Variations of the product are expected to grace the shelves of other big carriers, like Verizon Communications Inc. (NYSE:VZ), in subsequent weeks.
Another key highlight was the lack of interest in the Lumia’s lower end 820/810 family at Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T), and Deutsche Telekom AG (ETR:DTE) (FRA:DTE)’s T-Mobile. This presents a major drawback for Nokia Corporation (BIT:NOK1V) (NYSE:NOK), as it intends to use demand for both the low-end handsets and the high-end handsets to leverage the Lumia line into the mass market. In light of this, MKR believes that Lumia 920’s start, albeit impressive, is not enough to push the company out of its long familiar bearish incline. MKR has convictions that Lumia is unlikely to achieve volumes that will restore devices and services to profitability over the next two years, meriting the analytical firm’s decision to reiterate its previous sell rating on Nokia Corporation (BIT:NOK1V) (NYSE:NOK). MKR has also placed a price target of $1.50.
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Although retail checks present some hope for Nokia Corporation (BIT:NOK1V) (NYSE:NOK), MKM references its lack of confidence in Nokia to a recent proprietary study that showed only 1 percent of over 1,000 U.S. consumers surveyed would buy a Nokia smartphone.
Current demand paints a bullish picture
In as much as the current situation doesn’t favor Nokia Corporation (BIT:NOK1V) (NYSE:NOK)’s long-term prospects, hope continues to draw closer. News just in confirms that the Lumia 920 has sold out on the both the Amazon and AT&T websites, signaling increased demand for the device. The situation isn’t any better in Germany, where we had earlier reported the device selling out at the wake of frenzied buying.
If demand continues trending upwards, Nokia may have a chance of reclaiming its market share in the smartphone market. Nevertheless, it is still too early to tell. Consumers are still adjusting to the stir caused by multiple product launches among handset makers.