Nokia is expected to report a quarterly loss ahead of the launch of the Lumia 820 and 920 smartphones. Reports have forecast a drop in Nokia’s cash position from 4.2 billion euros (£3.4 billion) to in the last quarter to 3.4 billion euros (£2.8 billion).
The weak quarterly performance has been ascribed to a drop in sales of current Nokia models that are available for retail. Analysts believe that the new Lumia range may compensate the Finnish phone maker for its losses, with its long term survival hinging on the success of its flagship models.
Though that may be difficult with Nokia facing strong competition from an array of phones, which like the Lumia, are expected to launch in tandem with the Windows Phone 8 OS. The former world’s largest mobile phone maker will also have to contend with Apple’s iPhone 5 and a host of Android flagships, making the current state of the smartphone market highly competitive.
Eric Beaudet of Natixis Securities said, "Competition is fierce, the story really will be whether it can ramp up with the Windows 8 phones."
The Lumia 820 and 920 are expected to launch in unison with the Windows 8 platform on 26 October. The Nokia Lumia 920 is currently available for pre-order and is priced at £469.99.