In what critics have deemed as bouts of desperation, Nokia Corporation (NYSE:NOK) has owned up to using tactful and unorthodox trickery in promoting its newly launched Lumia 920. This has compelled the company to initiate an internal ethics probe.
This new smartphone, which assumed the role of flagship device in the recent unveiling of Windows 8 Phone handsets, was earlier praised for its optical image stabilization capability (OSI). In Nokia’s attempts to quickly cash in on the enhanced capability, it hurriedly released a promotional clip that purportedly compared a video shot by a phone without OSI and a video shot by the Lumia 920.
Paul J. Isaac's Arbiter Partners returned -19.3% in the third quarter of 2021, according to a copy of the hedge fund's quarterly investor correspondence, which ValueWalk has been able to review. Following this performance, the fund's return sits at -1.6% for the year to the end of September. In comparison, the S&P 500 returned 15.9%, Read More
The promotional clip had an obvious slant towards Nokia Corporation (NYSE:NOK) and the video taken by Lumia 920 greatly outshone the video taken by the phone without OSI. Nokia’s glory was however cut short after the verge took note of a conspicuous reflection in the clip.
Interestingly, the fake clip was quickly followed by a legitimate clip that exhibited the capabilities of the Lumia’s OSI and further compared it to a phone without OSI.
Perhaps to elude protracted controversy, Nokia Corporation (NYSE:NOK) owned up to its gaffe. The initial fake clip was actually shot from a normal video camera and not the flagship Lumia 920 that prospective customers had been made to believe. In addition to that, an embattled Nokia owned up to using still images from the fake video. These confessions were of course followed by emotive apologies as the company tried to justify its actions and rationalize the confusion stirred by the fake clip.
All this confusion will however be resolved by the company’s ethics and compliance officer. This was revealed on Monday through an interview that featured the company spokeswoman Susan Sheehan. She noted that the ethics and compliance officer was compiling an independent report that would source the root of the problem.
One point of note in Sheehan’s interview with Bloomberg was the stand that the company took with regard to the probes. The spokeswoman remarked that the company would handle the issue “quickly, fairly and privately”.
This suggests that the company is trying as hard as possible to avoid further controversy and subsequent reports on the story.
After looking at Nokia Corporation (NYSE:NOK)’s current position in the industry, following the approach that it has noted could perhaps be the best thing for it. Nokia needs to avoid unnecessary controversy and lure as many customers as possible ahead of the highly anticipated iPhone 5 Launch slated for Wednesday this week.