Nokia's Microsoft phone is not the comeback kid

Hopes that Nokia might be able to turn its fortunes around early using a Windows 7 phone have largely failed.

Despite the fact that the Lumia 800 has won good reviews, only two percent of Europeans say that they are interested.

According to a survey by Exane BNP Paribas, while there appears nothing wrong with the phone, the punters are just not interested.

Bernstein analyst Pierre Ferragu warned that the smartphone market was consolidating fast and was being divided between Google and Android. Phones using Microsoft software only have a two percent market share, he said

Nokia’s shares have fallen over 20 percent since the October 26 launch of the new phone, with investors fearing Nokia would be unable to claw back the market share it has lost in the past few years.

Irritatingly, phones using Nokia’s old Symbian software, still outsell Windows phones by 10 to one.

Nokia insists that there is a lot of “positive momentum” for its Windows phone but is not giving the world any numbers. It pointed out that Nokia had never counted on the first Lumia phones to lead to a quick turnaround but instead expected it to be the first step towards recovery.

Swedbank analyst Jari Honko told MoneyControl  that Nokia could win back market share in feature phones and in smartphones.

He added that Nokia’s product portfolio had got a lot better since Stephen Elop took over as the chief executive in September 2010. The hope is that the 2012 Windows 8 upgrade could also attract a wider audience by making the way smartphones, tablets and PCs work more similar.