Nokia Corp. (NOK) said Wednesday it has identified a software glitch in its new flagship Lumia 900 smartphones, dealing a blow to the struggling mobile phone giant. The product went on sale from Easter Sunday on AT&T's network after a quiet launch.
The 4G Windows Phone, currently one of the Top 100 Amazon bestseller, is critical for all three companies: Nokia, Microsoft and AT&T, to make a device that could dominant the U.S. market.
Nokia stated in a blog post that the glitch was a memory management issue, cautioning users that the device in current form could potentially lead to loss of data connectivity.
"This issue is purely in the phone software, and is not related to either phone hardware or the network itself. As a proactive and prudent measure, we decided to take immediate action. We have identified the issue, and have developed a solution," Nokia said. The company is likely to update the software on or around April 16.
Nokia has offered two options for those who already purchased the device: either update it with a latest software fix via Zune by Monday or swap the current device for an updated version.
As a "gesture of goodwill," Nokia is offering a $100 credit to those who have already purchased the product or will purchase one between now and April 21. The device is currently being sold at $99.99 and is due to launch globally this quarter.
Smartphone business has increasingly become a volume play, with giants Apple and Samsung talking sales in million units within days of their product launches. Nokia needs to play catch up and has been heavily relying on the new device's success. Such glitches could potentially impede its efforts to renew its presence in the U.S.
However, the move by Nokia to address the present situation has reportedly pleased users with some saying the act is beyond a gesture of goodwill.
The once-dominant player in mobile phone market suffered a $1.4 billion loss in the final quarter of 2011, amid plunging sales. It is taking the cost reduction route for a turnaround and has announced plans in February to reduce 4,000 jobs.
by RTT Staff Writer
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