Nokia faces suit over Windows Phone smartphone failure
May 5th, 2012, 1:05 P.M. — Rubbing salt in Nokia’s wound, company faces class action lawsuit that insults Microsoft’s underrated operating system, and Nokia’s decision to join Microsoft and not Google’s Android.
Nokia, Microsoft’s biggest Windows Phone partner, is facing a class-action lawsuit because the Windows Phone strategy of the Finland-based phone maker is failing. According to PC Magazine, Robert Chmielinski alleges that Nokia’s decision to join Windows Phone ecosystem failed to stop the downward move inside the lucrative mobile phone market, currently dominated by Samsung, Apple and Google. Apparently, Samsung recently surpassed Nokia as the world’s top handset maker.
Nokia recently revealed that it lost $1.7 billion in the first quarter of this year and also $1.3 billion in Q4 of 2011, even after selling at least a million Lumia smartphones with no word about returns. According to Chmielinski, Nokia is guilty of fraud for telling its investors that Microsoft’s Windows Phone operating system will stop Nokia’s “deteriorating position in the smartphone market.”
He, also represented by Robbins Geller Rudman & Dowd, also added that the Nokia Lumia 900′s software bug that forced Nokia to offer $100 rebates, makes the phone essentially “free.” For starters, the Nokia Lumia 900 is the latest smartphone of Nokia, in partnership with Microsoft, runs AT&T LTE and with the latest version of Windows Phone. Nokia, apparently, is trying to compete with the iPhone and other Android-based phones with the Lumia 900 sporting a cheaper tag price.
According to numerous research firms, Google’s mobile operating system, Android, leads with the biggest smartphone market share, while Apple’s iOS taking the second spot with a double-digit market share. Microsoft’s Windows Phone, Nokia’s one and only ticket inside the smartphone market, is stuck with a single-digit market share, and still facing a decline.
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