Helsinki: European consumers show little interest in Nokia's first smartphone using Microsoft's Windows Phone software, a survey by Exane BNP Paribas showed on Friday.
"With only 2.2 per cent of surveyed buyers firmly intending to purchase the Lumia, Nokia's first flagship Windows Phone is ... far behind the current blockbusters, Apple's iPhone 4S and Samsung's Galaxy S II," analyst Alexander Peterc said in a note.
The brokerage slashed its view on sales of the Lumia to end-users to just 800,000 from its initial "ballpark estimate" of 2 million and said this compared with launch-quarter sales of between 3.5 million and 4 million for Nokia's previous flagship, the N8.
Exane BNP Paribas cut its price target on Nokia shares to 3.30 euros from 3.70 euros and stuck to its "underperform" rating on the stock, which was down 1.3 percent at 3.736 euros by 0939 GMT.
The brokerage surveyed 1,300 consumers in the five markets where the Lumia 800 had gone on sale in the week started December 5, but narrowed the sample to 456 who had declared an intention to purchase a smartphone in the next month.
Samsung's handset sales this year broke a new annual record by the end of November, boosted by good demand for its flagship Galaxy S II model, whose sales reached 10 million units, the company said a week ago.
The Reuters poll does not break out Samsung smartphone sales as the firm does not report the number, but five analysts forecast those sales should be similar to that of Apple.
Sales of Nokia products will also be closely watched in the quarter for first reactions to its Windows Phone models, although most Nokia smartphones are still powered by its own ageing Symbian software.
"I don't think Nokia joining the force can make a difference," said Yuanta Securities' Chang, noting that HTC and Samsung models using latest Windows Phone software have not fared well.
Analysts expect Nokia's smartphones sales in the fourth quarter to fall 31 percent from a year ago to 19 million phones as the new Windows Phones will not yet compensate for diving Symbian sales. Still, that would be well ahead of HTC's 11 million and RIM's 14 million.
Black plates with big screens
With the proliferation of touchscreens and half of all smartphones sold using Google's Android operating system, consumers are struggling to see the difference among the models.
"Everybody is just buying black plates with big screens," said Strategy Analytics' Mawston.
Most top models also have 8 megapixel cameras among other similar features.
"If you look at the phones there is nothing particular really there," said Canalyst analyst Pete Cunningham. "It's a really tough market and it is going to get tougher."
Chinese vendors ZTE and Huawei have started to win market share with their cheap smartphones using Android, and cut-price competition is set to continue with chipset supplier Spreadtrum unveiling last week a platform for $40 Android phones.
And the market seems to only be getting more crowded. Last week, Japan's Panasonic Corp said it would return to the European smartphone business next year, six years after it abandoned overseas sales of feature phones.
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