Nokia targets volume over margin with Windows phone launch

Nokia's new Windows smartphones received mixed advanced orders compared with rival handsets competing for key Christmas sales, according to mobile operators. Two operator insiders told the Financial Times that the phone, which rolled out in the UK on 16 November, had far fewer pre-orders than Apple's iPhone 4S, and had also been slower than recent high-end phones using Google's Android operating system. The iPhone 4S has been the best performing phone for many operators in its launch period, and is encountering supply issues owing to continued demand. However, Orange was more positive about Nokia's Lumia 800, saying it had been the most successful Nokia launch and had been popular in pre-orders, although half had been take-up of a deal that gave away a free Xbox games console. Nokia CEO Stephen Elop said sales would build over time although he declined to give internal targets. He said the phone and the Microsoft Windows operating system it runs on were new experiences for most consumers. "This is not another model, it is something brand new," he told the Financial Times. Elop said at Morgan Stanley's investor conference in Barcelona that the initial aim was to build volume above any margins target, which was why the phone was priced below rival handsets. Improving margins would come at a later stage, he said. "We are interested first and foremost about volume. Our highest priority is to help Windows phones to compete with Android. This is the first showcase product."