Nokia Shares Dive After New Smartphone Launch

Nokia shares nose-dived as it unveiled its latest Windows-powered smartphone in what may be its last chance at winning back a lucrative market lost to rivals.

The Finnish company's share price crashed by 18% before rallying back to 10% as it unveiled what it called the "most innovative smartphone in the world" at a glitzy launch in New York.

Analysts were unimpressed by its Lumia 920, which uses the Windows Phone 8 operating system, and includes wireless charging and 'Pureview' camera technology to help reduce blur from hand motion.

Sky's technology correspondent Katie Stallard said: "It was a big thumbs down. I wonder whether it was partly influenced by the manner in which it was launched.

"This was a hi-tech ritzy launch in New York and the first four minutes of the webcast dropped out.

"There was no sound, the picture was coming and going - it was not quite the image they wanted to present."

Nokia said the phone will let users see building names by pointing the camera, and tapping the screen will give more details. Its 'Puremotion HD' will allow better screen resolution than normal, and adjusts colour and brightness in response to sunlight to improve readability.

It said Virgin Atlantic will put Nokia wireless chargers in its airport lounges.

It comes a day after Nokia whetted tech appetites when it unveiled a free music streaming service for US customers with its Lumia handsets, without advertising, as it seeks traction in the smartphone market.

Nokia was once the leader in mobile phones but it has been losing market share as consumers move to phones powered by Apple's iOS and Google's Android operating system.

Its shares were worth $40 in 2008, but now trade at around $2.50.

Meanwhile, Google-owned Motorola Mobility and US telecom giant Verizon Wireless are hosting their own event in New York City, with analysts predicting they will introduce a beefed-up Razr smartphone powered by Android software.

A day later, Amazon is expected to debut a new version of its popular Kindle tablets at an event in California.

Taiwan-based consumer electronics titan HTC also plans a September 19 event in New York, at which it is expected to unveil slick new smartphones powered by Microsoft's new Windows 8 mobile software platform.

Apple on Tuesday invited members of the media to a September 12 event in San Francisco for what is expected to be the debut of a new-generation iPhone.

Email invitations bore the cryptic message, "It's almost here", and a large number "12" casting a shadow that appeared to be the number five, suggesting that the event would spotlight the long-anticipated iPhone 5.