Nokia delays flagship N8 phone again, shares hit

“Nokia said it would delay again its flagship smartphone N8 model, hitting its shares on the day new chief executive Stephen Elop started at the helm,” Tarmo Virki reports for Reuters. “The N8 is seen by analysts as Nokia’s first top-range model to challenge Apple’s iPhone more than three years after its launch.”

MacDailyNews Take: First? Not quite:
• Nokia halts sale of iPhone killer; 5800 handset plagued with major problems – March 02, 2009
• Nokia preps N97 ‘iPhone killer’ – December 02, 2008
• Nokia to unveil ‘iPhone killer’ code-named ‘Tube’ on October 2 – September 26, 2008
• The knockoff parade continues: Nokia exec shows Apple iPhone lookalike ‘Tube’; dismisses Apple – April 08, 2008

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Virki reports, “Its success is seen as being crucial for Nokia’s profit margins, and analysts warned on Tuesday the delay could hit earnings in the third and fourth quarter.

“Nokia shares were 3.2 percent lower at 7.62 euros by 1203 GMT, underperforming 0.2 percent softer STXE 600 Technology index .SX8P,” Virki reports. “‘Given an envisaged around 3-5 week delay in N8 ramp-up, as well as potential further execution delay around the remaining product portfolio refresh, we believe Q4 sell-side estimates are too high,’ Citigroup analyst Zahid Hussein said in a note.”

“The N8 smartphone, first to use Nokia’s new Symbian software, was originally scheduled to reach consumers in June,” Virki reports. “In April, Nokia warned that the software renewal would take longer than it had expected due to quality problems and said that the N8 would reach consumers by the end of September.”

Full article here.

MacDailyNews Take: Nokia is a tarnished brand and a floundering company who can’t back up their big mouths. Watching them crash and burn will be particularly enjoyable.