Tuesday, September 18, 2012

Nokia Laments 'Poor Judgment' in Lumia Marketing

STOCKHOLM—Nokia Corp. Friday said its use of misleading marketing material for its new range of Lumia smartphones was a result of "poor judgment" and the company has taken "appropriate action" to correct the problem.
Earlier this month Nokia was called out by independent blogs for not having used its own hardware to shoot promotional videos demonstrating the benefits of the camera of its new Lumia 920 flagship device.
Nokia is joining the fray against Pandora, Spotify and iTunes with Nokia Music, an ad-free streaming music service exclusive to the Lumia handsets. Jyrki Rosenberg, Nokia vice president of entertainment, joins digits to discuss.
The blunder has overshadowed Nokia's highly anticipated unveiling of two new smartphones running Microsoft Corp.'s latest update of the Windows operating system. The problem prompted an internal investigation that was concluded on Friday.
In a written statement, a Nokia spokeswoman said the findings from the internal investigation "confirmed that poor judgment was exercised in the use of the [marketing] materials." She added that Nokia has taken "appropriate action" as a result of the findings, but declined to elaborate on the steps it has taken.
The new features of Nokia's new Lumia 920 and 820 phones, first displayed on Sept. 5, include an improved camera, mapping services and wireless charging. The total package amounts to the "most innovative smartphone in the world," the company's Chief Executive Stephen Elop said in conjunction with the unveiling.
However, Nokia has yet to detail when the phones will become available, where to buy them or what they will cost. U.K. operator Everything Everywhere, a joint venture between France Télécom's Orange and Deutsche Telekom AG's T-Mobile, earlier this week said it would sell the two new Nokia phones, but didn't specify when. U.S. company Verizon Communications Inc. has also said it would sell Nokia's new Lumia devices.
Nokia is likely to face tough competition on the smartphone market this autumn, as rivals including Apple Inc., Samsung Electronics Co. and Motorola all have announced new high-end devices ahead of holiday sales. Apple appeared to have sold out of its initial inventory of the iPhone 5 just an hour after it began accepting preorders Friday, suggesting strong consumer interest.

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