Nokia (NYSE:NOK) said that high demand for its flagship Lumia 900 is the culprit behind recent notices on AT&T Mobility's (NYSE:T) website that the device was out of stock.
"The inventory situation is primarily a function of demand because we are seeing that most customers are opting to keep their units and simply update via Zune," Nokia spokeswoman Karen Lachtanski told AllThingsD. "So the impact of customer swaps is insignificant. We are producing more devices to satisfy demand as quickly as possible."
Currently, the cyan version of the LTE-capable Lumia 900 is out of stock on AT&T's website while the matte black version is in stock. AT&T and Nokia have not said how many Lumia 900 devices have been sold so far, but both have said the demand has been strong. Paul Roth, AT&T's president of retail sales and services, told the Wall Street Journal last week that Lumia 900 sales had exceeded expectations.
Further, it appears that the software glitch that affected some Lumia 900 customers' ability to connect to data networks has not had much of an impact on inventory. Nokia began distributing a software patch on April 13 for what it termed a "memory management" issue, and said most Lumia 900 customers have opted to download the patch rather than exchange their phones. Nokia also said every individual who has already purchased a Nokia Lumia 900--or who will purchase one between now and April 21--will receive a $100 credit to their AT&T bill from Nokia, essentially making the phone free (it went on sale April 8 for $99.99 with a two-year contract).
Despite the high demand for the Lumia 900, it appears Nokia is headed for a large first-quarter loss. Nokia warned about the operating margin in its devices business last week. The company reports earnings tomorrow.
- see this AllThingsD article
- see this AP article
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