Nokia releasing new smartphone with hopes to boost its brand

Nokia is trying to revive its U.S. business with Smartphone released this weekend that may determine the future of the company. Initial sales will probably trail recently debuted competitors, hurting the ability of the Company.

Nokia's flagship Lumina 900 that runs Microsoft Windows Phone software will begin to sell through AT & T, the second largest U.S. wireless carrier, on Sunday. Sales in the first three months of supply will reach hundreds of thousands, but millions as the market-leading iPhone, according to Deutsche Bank Securities and avian.

"It's going to be an uphill battle," said Matthew Thornton, an expert on avian in Boston. "Nokia brand, but I think it is still known here, lags Apple and even Samsung. I do not see the phone will hit."

The price has been set at half of the iPhone and Nokia is trying to revive sales in a market that operates smartphone innovation and global trends of consumers. Espoo, Finland-based company lost mobile phone leadership position in the U.S. years ago foreshadowed eroding sales in Europe and Asia also as consumers around the world by U.S. users to Apple's iPhone and phones running Google Android software.

"This attack will set the tone for recovery Nokia," said Alex Spektor, an analyst at Policy Analytics in Newton, Mass. "The U.S., where the rise of the iPhone, has become an important market for mobile phones, so well here is important for the seller wants to succeed globally. "

Nokia, the world's largest smartphone maker, has lost more than 80 percent, or $ 80 billion, its market since 2007, the iPhone is. Population has declined by 51 percent since President Stephen Elop started in 2010.

While Nokia and AT & T declined to give specific targets for the device, quarterly sales below 1 million units would probably be disappointed that the typical volume Nokia in other markets, according to John Jackson, an analyst at CCS Insight in Boston.

"There will be a number that starts with m," Jackson said. "Nokia is not prone to get out of bed for any less than a few million during the year."

Elop has said Nokia needs revival in the U.S. as part of its turnaround plan. The debut of the AT & T may be the best chance to win Nokia back to U.S. customers because the new models from Apple and BlackBerry maker Research In Motion is not expected before the second half.

"It's important for them to get this phone in the hands of people," said Roger Entner, an analyst at Recon Analytics in Dedham, Mass. "The timing is good, there is no other major phones on the market now. The iPhone is still 5 months away. "

Aggressive price Lumina and marketing expenses can mean Sony and Microsoft will not make any profit with the device, and it may not be their focus, Thornton said. It is important for the phone to become a hit to give the airline a reason to bid on future Nokia Windows Phone devices, he said.