Nokia Lumia 800 KeyboardDespite being well received by critics (us included), Nokia’s long-awaited Windows Phone devices aren’t quite making the impact the company would’ve hoped. According to a survey by Exane BNP Paribas, only two percent of Europeans in the market for a smartphone said they would go with the Lumia 800. This as Apple and Google continue to distance themselves from the competition.

It’s a combination of factors, analysts say. With Google at around 50 percent of the market share, and Apple sitting at 15-20, consumers just aren’t interested in what Windows Phone devices have to offer. That’s not to say the Lumia models aren’t good. Far from it. But with Windows handsets at just two percent market share, it’s becoming too little, too late for consumers to want to take the plunge.

“There isn’t much room left for a third ecosystem. The smartphone market is consolidating fast,” said Bernstein analyst Pierre Ferragu, who rates Nokia a “sell.”

Things have gone down hill for Nokia ever since launching its new Windows Phone device on October 26. Shares have fallen 20 percent, leading investors to fear Nokia will be unable to recover against rivals Apple and Google.

Still, Nokia is holding out hope, saying there was “positive momentum,” but didn’t share any hard data. In addition, one Nokia executive argued the company sees its current Windows Phone cycle as a step towards recovery, not a quick turnaround fix. So will the handset maker’s current strategy force it into a viable competitor next year?

“With current, and upcoming models, Nokia can win back market share in both — in feature phones and in smartphones,” said Swedbank analyst Jari Honko, who rates the shares a “buy.” “Today’s share price does not take into account any recovery in the Nokia market position.”

If Nokia’s Lumia phones are just the beginning, the company certainly has us interested in what’s to come. Whether or not the company can innovate enough to take interest away from Apple and Google is the big question. Maybe we’ll see something really great during CES early next month.

Are you excited for future Windows Phone devices from Nokia?


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