#NokiaWorld: Nokia unveils Lumia 800 and Lumia 710 Windows Phone devices

Nokia has unveiled its first smartphones running Windows Phone 7 since announcing in February that it will partner with Microsoft to use the operating system.

The Lumia 800 and 710 were unveiled by chief executive Stephen Elop at the annual Nokia World event in London, and form the first stage of Nokia's attempt to re-establish itself in the high-end mobile market.

The 800 is the premium phone of the two, set to retail at around €470 before taxes and other costs, and will be available from November in the UK, Italy, France, Germany and Spain.

The device has a 3.7in screen and 1.4GHz processor, and comes in cyan, magenta and black. It has 16GB of internal storage as well as 25MB of free storage on Microsoft's SkyDrive platform.

The second device, the 710, will retail at around €270 before taxes and other costs, and features a 5-megapixel camera as well as the same 1.4GHz processor.

The 710 is designed with a back cover that can be replaced with alternatives in the same colours of the tiles on the Windows Phone operating system.

Both devices will run on the Mango version of Windows Phone 7 that has been rolled out to other phones in recent weeks, and Elop touted the new models as the "first real Windows Phone devices".

Both phones feature a range of Nokia applications unique to the devices, most notably Nokia Drive which offers built-in turn-by-turn navigation.

Nokia also unveiled four low-end handsets for emerging markets in a range called Asha, which Elop said will help connect "the next billion" mobile users to the internet over data connections.

The phones offer features such as dual-Sim capabilities and touch screens, and start at €60.

The Lumia devices are the first step in the rehabilitation of Nokia in the smartphone market, and IDC analyst Francisco Jeronimo said the handsets proved that the firm still has what it takes to compete.

"It will take a lot more than just a couple of phones to bring Nokia back, but what we are seeing today is an excellent first step," he said.

"Nokia has shown it can change its culture, re-adapt and refocus on growth by delivering devices that combine the best hardware with unique services at the right price and at the right time. We foresee a brighter future to Nokia now compared to a year ago."

Ovum analyst Nick Dillon suggested that Nokia had done well to produce strong devices with unique features such as the Drive application and Mix music system.

"While none of these on their own are standout features, they at least provide Nokia with some ammunition for its marketing and sales team to market the devices in an increasingly competitive market," he said.

"Considering that Nokia had very little, if no, input into the Mango release of Windows Phone, the company has done well to differentiate its devices against those from other Windows Phones licensees."

However, despite praise for the devices, both analysts warned that it could take time for Nokia to see a notable turnaround in its performance.

"Consumers don't know the Windows Phone user interface or its advantages. They have never tried a Windows Phone before and quite likely don't know anyone who has a Windows Phone," said Jeronimo

"In the coming weeks, these devices will share the store shelves with several popular Android devices, the new iPhone 4S and even some new BlackBerry 7 devices."

Dillion added that much of the challenge will come from convincing people to use Windows Phone 7 and getting them to ditch Android or iPhone platforms, which have been in use far more by consumers.

"The challenges Nokia faces are significant. Many potential Windows Phone customers will have already bought an Android or iPhone and will have some form of attachment to those platforms," he said.

"For consumers, they will need to have a clear and simple answer to the question: 'Why should I buy this instead of an iPhone or Android?'"

Nokia will be hoping that the new handsets prove popular as the company has seen disappointing financials in recent months, and has been forced to implement huge cost-cutting measures and strategy changes.