Skip to comments.Nokia Lumia 920 Windows Smart Phone Sells Briskly but Struggles to Meet Solid Demands
Posted on 12/17/2012 7:57:49 AM PST by SeekAndFind
Supply of Nokia's Lumia 920 was getting scarce in the past few weeks due mainly to solid demands and apparently the Finnish mobile phone maker was caught off guard by the overwhelming reception generated by its new flagship smartphone.
In a research note published Monday by market research firm Canaccord Genuity, it appeared that the Lumia 920 started on a rock-solid footing in the U.S. market, its sales numbers decent enough to come behind the bestselling smartphones in America as of November this year - Apple's iPhone 5 and Samsung's Galaxy S3.
"Our checks indicated the Lumia 920 was the top-selling Windows smartphone at AT&T and number 3 selling device at that channel," Canaccord Genuity analyst T Michael Walkley was quoted by BGR News as saying.
That same note indicated too that the Nokia smartphone, powered by Microsoft's Windows Phone 8, has been drawing remarkable attention from key markets around the world, including Europe, where the handset was recently reported by Bloomberg as enjoying an LTE advantage over the iPhone 5.
"The Lumia's LTE connectability is going to help Nokia stand out to holiday shoppers," a Nokia official was reported by Bloomberg as saying, adding that both the Lumia 920 and Lumia 820 are LTE-compatible with at least 12 networks in Western Europe.
Unfortunately, such headstart was squandered a bit by Nokia as it struggled to meet orders for the 920, cause of which was likely on cautious efforts by the firm not to over-produce the WP8 handset, analysts said.
"Limited initial supply was cited as the reason for early post-launch stock-outs at some carriers versus overwhelming demand," Mr Walkley said in his note.
He also expressed fears that it could prove lost opportunity for Nokia to rake in as much cash as possible with the Lumia 920, adding that consumers' interest of the gadget could eventually wane in the months ahead as fresher handsets hit the international market.
One possible competitor for the 920 come the early months of 2013 is Samsung's Galaxy S4, which is being rumoured to join the million-selling Galaxy S pedigree as early as the first quarter of next year.
Yet for now, Nokia can take comfort on robust sales figures from key markets which pointed to the fact that the Lumia 920 is developing into a smartphone brand that spells more good news for the tech firm, BGR's Zach Epstein said.
"We wondered if (the Lumia 920) was compelling enough to attract consumer attention. In these early days, the answer appears to be 'yes'," Mr Epstein said.
But as other analysts have initially observed, Nokia could ill-afford to relax just because the 920 has been registering fantastic sales figures. Its Windows rival, HTC's Windows Phone 8X, is also doing relatively well, Mr Walkley said.
In fact, the HTC 8X is outperforming the Lumia 820 in the same U.S. market based on data provided by T-Mobile and Verizon, the Canaccord analyst added.
“Amazon (AMZN) currently lists the 920 as its best-selling AT&T (T) smartphone, beating out the Galaxy Note II, Galaxy S III and One X. BGRs own sources state that in-store sales of the Lumia 920 have been better than we expected in at least some U.S. regions, further suggesting a relatively strong start for Nokias new $99 flagship phone.”
If the following news report is true, maybe some of you marketing folks out there can explain to us what the point is....
The Nokia Lumia Sellout - Most Likely A Marketing Strategy
It was fascinating to see that Nokia (NOK) had a hit product with Microsoft’s (MSFT) Windows Phone 8, or so it seems with the Nokia Lumia 920. Recently a DB analyst hit a warning note regarding Lumia sales being smoke and mirrors; we investigated the situation in London to see if there is any element of truth. The worldwide sold out reports, including the one from an RBC analyst, resulted in a quicker rise in Nokia shares than we anticipated.
It seems the new Nokia Lumia is a hit in both Germany, parts of Europe and USA. There are many shops without any supply. The thing is, it appears Nokia may be managing supply to create an additional aura to the product. This is something that Apple (AAPL) and Nintendo (NTDOF.PK) have done before, though it is a high risk marketing strategy, sometimes pursued for technical reasons. Essentially, when a product is released before manufacturing capability has ramped up, it creates scarcity even with small demand. It is not a bad strategy, but do not expect sales and revenue records in Q4, based on a limited supply. Investors should never be fooled by sold out claims when the shipped volume is not disclosed. It is better to be realistic in expectations.
The Nokia Lumia Windows Phone 8 range is up against strong competition, and is currently not available on all networks. The apparent scarcity and news reports will be beneficial in the short term, but it is also risky; customers can turn to competitors if this situation is not resolved. It is December and still the Nokia Lumia 920 is hard to obtain on 3G networks. Let us explain.
The Lumia 920 Has Limited Providers - UK
Nokia 920 in the UK, USA, and China at least, is limited to one provider. In the UK we have a new triple brand network, which is a merger of Orange, T-Mobile and a new 4g consortium primarily owned by Deutsche Telekom (DTEGY.PK). We call it the Orange-TMobile provider. This cannot be good for Lumia sales in the UK. The competing, high end, HTC 8x phone is available on all the carriers including Three and Vodaphone. The situation is similar in other parts of Europe.
Phones4u is a leading UK based mobile retailer, nominated as the best in the high street, that only deals with the new merged consortium operator. The other major retailer, CarphoneWhareHouse, does not carry the Lumia 920. The handsets Phones4u provide are either 3G or 4G, with the 4G contracts being marketed under the EE network, and 3G as either T-Mobile or Orange. Currently all the Phones4u and T-Mobile shops we checked only have the white Lumia (4g only) version. The white Nokia Lumia 920 is either software or hardware limited to the 4g network. At this point we are unsure how this limitation has been put in place. All other colors are out of stock or were never in stock, according to the sales representatives we spoke with. The managing salesperson claimed that the Phones4u head office is promoting the UK’s 4g network by limiting the choice to the white Lumia 920. The problem with 4G in the UK, is that it has much more expensive tariffs. The other colors are advertised as both 3g and 4g compatible.
Not Available or Out of Stock?
When I wanted to buy one, I had to consider changing network, and the only available choice was white. The other 3G compatible colors are showing availability from mid December, while the white version is available now in shops as we verified ourselves. The wording in online retailer responses we obtained also confirmed they never had non 4G exclusive versions in stock.
Who in the hell can keep up with what seems daily technological changes just for a frikin phone???
Bring back the good old days of a solid black rotary dialer rented from the phone company and the only decision one had to make is either a private line (if available) or two or four party line.
Check out the “oppo finder” ...
I shared your sentiments when I got my last phone; I was put off by the fact that it was impossible to have a phone that was only a phone. That changed within a week of acquiring my current phone, a Samsung Galaxy S. The only reason I went for it was because it was free, but within a few days I was thorougly addicted thanks to Google Sky Map.
Every other month they come out with a new and improved i-fill in the blank and they wring their hands that everyone doesn’t rush out and buy it. I’ve had two plane jane cells and only got the second one because it was cheaper than getting a new battery for the first one.
Why did they market to AT&T exclusively at launch? Seems it would have made more sense to cover all carriers.
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