Finnish mobile phone maker Nokia unveiled a cheaper smartphone using Microsoft's Windows Phone software on Monday, aiming to win back market share by targeting a wider audience.
Nokia last year dumped its own smartphone software in favor of Windows Phone to step up its fight against rivals such as Apple's iPhone, but the high prices of its phones have been a major weak point.
Nokia said its new Lumia 610 model would carry a price tag of 189 euros ($250), excluding subsidies and taxes, when it goes on sale next quarter. That compares with around $600 for the iPhone and other high-end smartphones.
"The 610 takes Nokia's Lumia portfolio to an encouraging new price point in its pursuit of cheaper Android rivals," said Ben Wood, head of research at CCS Insight.
Investors, however, were unconvinced the new model and pricing would do the trick, and Nokia shares were down 7.0 percent to 4.02 euros by 1237 GMT.
Analysts noted that Asian handset makers such as Huawei and ZTE were coming out with even cheaper smartphones for closer to $100.
"I had hoped for a slightly lower price range. Maybe the markets were a bit disappointed with the price, which was quite high," Inderes analyst Mikael Rautanen said, adding the shares had spiked on Friday in anticipation of the event.
Nokia also announced a global version of its high-end Lumia 900 phone and unveiled a new top-of-the range cameraphone 808, which comes with a 41 megapixel camera sensor, as well as three more basic models.
The move comes over a year after Chief Executive Stephen Elop compared Nokia to a "man standing on a burning oil platform" and teamed up with Microsoft to take on Apple and Google's Android phones.
Wall Street and industry analysts say that although the latest Windows phones could be worthy competitors to Apple's iPhone and top-of-the-range Android handsets, the devices lack unique qualities to make their sales take off.
Microsoft's share of the smartphone market fell to just 2 percent last quarter, from 3 percent a year ago and 13 percent four years earlier, according to Strategy Analytics.
In addition to its struggle in high-end smartphones, Nokia also faces an increasing threat from Asian manufacturers.
Analysts say both Huawei and ZTE are set to grab more market share globally in 2012, as they shift their focus from basic phones to smartphones.
Huawei and ZTE are now selling smartphones running on Google's Android operating system, attracted to the higher margins the market provides.
Both companies made new handset announcements at the same trade show, the Mobile World Congress in Barcelona.
Analysts said that while the downturn in the headline readings was disappointing, the economy continued to put in a strong performance.
Crude prices stabilised after diving more than two percent on Tuesday on increasing fears of a global supply glut, as continued production in the US and elsewhere offsets an OPEC output cut deal.
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However, most other regional markets struggled after Monday's healthy gains, despite being given a positive lead from Wall Street where the Dow and S&P 500 closed at fresh record highs.
The purchase in one fell swoop gives Amazon, which until now has operated almost entirely on the internet, a big presence in the brick-and-mortar world on Main Street, with more than 450 stores in the US, Canada and Britain.
"The Bank of Russia Board of Directors decided to cut the key rate to 9.00 percent per annum," the bank said in a statement. The cut follows a half-point decrease in late April.
Equity traders have suffered a fraught week as the crisis engulfing Donald Trump picks up pace, technology firms tumbled from recent highs and energy plays were hammered by plunging oil prices.
"In May 2017, passenger car registrations across the EU increased by 7.6 percent to 1.387 million units," ACEA said in a statement.
In the eurozone, Frankfurt's DAX 30 index climbed 0.4 percent to 12,746.05 points, and the Paris CAC 40 gained 0.5 percent to 5,243.53 compared with the close on Thursday.
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While a "rebalancing of the market" was "underway," it was "at a slower pace than originally anticipated," the Organization of Petroleum Exporting Countries wrote in its latest monthly oil market report.