Nokia and Microsoft’s sharp-looking new phone, the Lumia 900, is coming out today, and while there are no visible signs of panic, both companies desperately need a winner.
Nokia has been struggling for years now to compete in the rapidly changing mobile market, and Microsoft’s Windows Phone 7 OS has achieved only 2% penetration. Both companies are in danger of being locked out entirely, and need a smash hit.
So far, the results of their labors look pretty good. But will that be good enough? Nokia lost $1.4b in 2011, which includes a fourth quarter cash payment of $250m made by Microsoft. If the Lumia isn’t a breakout, is Microsoft willing to keep Nokia afloat?