The Finnish company and the world's largest software maker showcased the device on Wednesday in what may be their last major shot at reclaiming a market lost to Apple, Samsung and Google.
Microsoft and Nokia hope the new Lumia - sporting a bigger screen and cutting-edge camera technology - will become a potent weapon in an escalating global mobile industry war, but investors said it lacked "wow" and gave it a quick thumbs-down. Some analysts said Nokia's reticence on dates and prices did not help.
Nokia's Helsinki shares began sliding midway through the New York launch and ended down 13 percent at 1.99 euros, logging their biggest single-day loss since June. Nokia's U.S.-listed stock was down almost 10 percent to $2.55.
"The challenge is that the world is working on the 4th, 5th and 6th editions of their devices while Nokia is still trying to move from chapter 1. It still has quite a bit to catch up," said RBC analyst Mark Sue. "People were looking for something that would dazzle. Most investors will view it as evolutionary, not revolutionary."
Sue added: "Nokia has made some good progress but investors were looking for quantum leaps. We didn't get that."
Many of the industry analysts who got to see the phone up close in New York said it was a solid device with a few differentiating features, but it did not push the envelope - as Nokia CEO Stephen Elop had said it would.
Source: Reuters
