Strong Lumia Shipments Hints at Nokia Turnaround

The Espoo, Finland-based phone maker shipped between 800,000 and 2 million Lumia handsets to carriers, averaging around 1.3 million, according to Bloomberg. The promising forecast will help renew investor confidence in the company as looks to its line of Windows phones to rebuild its struggling brand this year.

The Lumia 800 went on sale in Europe in mid-November, while the Lumia 710 launched in four Asian markets and Russia in December. The 800 got off to a strong start in the U.K., selling out in many locations and leaving Nokia scrambling to meet customer demand for it, which hints at good things to come for the company's diversification into Windows devices.

Nokia is the top mobile phone maker in the world by volume, but that rank does not ensure either investor confidence or economic success for the Finnish company since low-end, low-cost handsets account for most of those sales.

Analysts project Nokia could nab third place in the global smartphone market if its Windows gamble pays off, lagging behind Apple and Google but beating out struggling BlackBerry maker RIM. Lumia sales could top three million this quarter, Bloomberg predicts, especially if the company's Windows phones sell well in Asia, a market where Nokia succeeded before with its Symbian devices.

Apple and Google garnered top spots in North America in recent years, offering high-end handsets that appeal to users looking to do more data-intensive activities on their phones. As a result, Nokia was largely left behind. The company is banking on momentum gained with strong, early Lumia sales to propel its journey back to the top of the smartphone market this year.

North America is next on Nokia's list, as AT&T readies for launch of the Lumia 900 later this quarter, giving the handset maker a potential foothold in a market dominated by Apple's iPhone and Google's Android-powered smartphones.

T-Mobile began offering the Lumia 710 this month, providing a low-end re-entry into the U.S smartphone market for Nokia. The true test for Nokia's recovery strategy, however, is the upcoming Lumia 900 launch. As Nokia's first LTE Windows phone and a Consumer Electronics Show award-winner, the 900 aims to attract users looking for a high-end, full-featured smartphone who want to try another option besides an iPhone or Android model.

If analysts predict correctly, Nokia's Windows phones could be strong competitors against Apple and Google in a market where some consumers are looking for fresh options. If the Lumia 900 gains a foothold in the U.S. market, it will signal the first real step in Nokia's turnaround.