Euro operators criticise Nokia

Posted by Kate Taylor

Four of the biggest telecom carriers in Europe are unhappy with the Nokia Lumia phone range, a survey by Reuters reveals.

They say the phones are overpriced, have a bad image because of teething problems with the battery and software, and aren't being marketed heavily enough. They simply can't compete with the iPhone or Galaxy phones, they conclude.

"No one comes into the store and asks for a Windows phone," said one mobile executive. "If the Lumia with the same hardware came with Android in it and not Windows, it would be much easier to sell."

Another commented: "If they could lower the price we think they could sell more. It might be worth making it a bit of a loss leader to get it out of the door. It's not rocket science."

While Nokia sold two million Lumia phones in the last quarter and says initial demand for the Lumia 900 is strong, it's still a long way behind the competition. Apple and Samsung are shifting around 40 million phones a quarter.

Yesterday, Nokia warned that it would post losses for the first and second quarters this year, prompting credit rating firm Moody's to cut its rating - to just one level above junk.

However, in the longer term Moody's is optimistic, saying it expects Nokia to become 'accepted in the market' this year, and predicting greater success for Windows Phone.