Nokia and partner Microsoft Corp showcased the Lumia 920 phone today in what may be their last major shot at reclaiming market share lost to Apple, Samsung and Google.
Microsoft and Nokia hope the device - sporting bright colours from red to yellow, a bigger screen, and technology that reduces blur and shakiness in pictures and video - will become a potent weapon in an escalating global war to dominate the mobile industry.
But investors said it lacked "wow" and some analysts said Nokia's reticence about dates, prices or carrier partners also did not help.
Nokia shares traded in Helsinki began sliding midway through the New York launch and ended down 13 percent at 1.99 euros, their biggest single-day loss since June. But the stock had gained 67 percent since mid-July as anticipation built ahead of Lumia's unveiling.
Its US-listed stock closed down 16 percent at $2.38.
Many of the industry analysts who saw the phone up close in New York deemed it a solid device with a few differentiating features. But it did not push the envelope as Nokia CEO Stephen Elop had promised.
"The challenge is that the world is working on the 4th, 5thand 6th editions of their devices, while Nokia is still trying to move from chapter 1. It still has quite a bit to catch up,"said RBC analyst Mark Sue.
"People were looking for something that would dazzle. Most investors will view it as evolutionary, not revolutionary. Nokia has made some good progress, but investors were looking for quantum leaps. We didn't get that."
The Lumia runs on the latest Windows Phone operating system,which Microsoft - the world's largest software maker - hopes will rival Apple's iOS and Google's Android to become a third mobile platform.
Nokia announced no partnerships with wireless serviceproviders, leading some analysts to worry this was a sign of weak carrier support. The Finnish handset maker said it would announce pricing and roll-out dates for the new Lumia later on acountry-by-country basis.
"It is impossible to assess this launch without price androll-out info. This is disappointing," said Bengt Nordstrom, CEOof telecommunications consultancy Northstream.
