Why Nokia Shares Plunged

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What: Shares of Nokia (NYSE: NOK  ) plunged today by as much as 15% after the company took the wraps off its newest flagship smartphone.

So what: Along with software partner Microsoft (Nasdaq: MSFT  ) , the Finnish device maker unveiled two new devices at an event in London this morning, the Lumia 920 and Lumia 820. The Lumia 920 will be the company's new flagship device and features a PureView camera with numerous functions for shutterbugs. It looks similar to its predecessor, the Lumia 900, but importantly is Nokia's first device for Microsoft's new Windows Phone 8 platform. Both devices feature wireless charging and large displays, 4.5-inch on the higher-end model.

Now what: The event didn't pack any major surprises, for better or for worse, and investors clearly weren't impressed with the new smartphone. Considering that Apple is set to unveil the iPhone 5 next week, Nokia shareholders apparently aren't confident that the Lumia 920 will hold much of a flame next to it. Analysts are similarly disappointed, expecting some color on carrier launch partners. Nokia also didn't specify an exact time frame, adding more uncertainty to the mix.

Interested in more info on Nokia? Add it to your watchlist by clicking here.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft and Apple. Motley Fool newsletter services have also recommended creating a synthetic covered call position in Microsoft and a bull call spread position in Apple. The Motley Fool has a disclosure policy.
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Read/Post Comments (4) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 05, 2012, at 1:31 PM, jflaten99 wrote:

    Buy on rumors - sell on news.....

  • Report this Comment On September 05, 2012, at 1:56 PM, garifolle wrote:

    "Buy on rumors"

    Today was too late to sell on the news.

    The news was old.

    The reaction was not anticipated.

    NOK is down, but MSFT is up...

    Buy low Sell high?

  • Report this Comment On September 05, 2012, at 2:48 PM, jflaten99 wrote:

    Still long NOK, anticpated a drop, and might very well increase my position. This due to my take on the future; the phones will sell well and NOK will be profitable in 2013

  • Report this Comment On September 06, 2012, at 10:40 AM, RONALD47OLIVEIRA wrote:

    ""and investors clearly weren`t impressed with the

    new smartphone."How can anyone makes an evaluation like that in less than a few hours after the presentation. On the other hand, in this case, customers opinion is more important than investors`.

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