Nokia's share price dropped by over 10 percent during the firm's Lumia 920 announcement as investors remain unconvinced by the firm's mobile strategy.
An hour after the event began the share price was down 11.48 percent to $2.51 per share, suggesting the tie-up with Microsoft and its soon-to-be-released Windows Phone 8 platform are still not seen as a threat to Android and Apple's market dominance.
Nokia has faced numerous questions over its financial performance over the past few months, with several ratings agencies downgrading the firm's financial status, despite reassurances from the firm's chief financial officer that it is managing its cash flows.
Despite the share price slump Tony Cripps, principal analyst at Ovum, said Nokia was clearly making a bold play to boost its presence in the US market in the hope of improving its market share.
"Nokia's decision to unveil its second generation Lumia devices in the US is extremely significant for the Finnish handset manufacturer, which has always struggled to make an impact in the country, even before the advent of Apple's iPhone.
"But this is also a notable launch for Microsoft, which needs to pull out all the stops to guarantee greater awareness and demand for Windows Phone 8 devices, among consumers, business users and carriers."
The Lumia 920 contains an 8MP rear camera that features the same camera technology seen in its previous Pureview smartphone.
It also packs a 1.5GHz dual-core Snapdragon S4 processor backed up by 1GB of RAM and has a 4.5in HD display and has Near Field Communication (NFC) technology, a microSD slot for expandable storage and 4G LTE.
The handset features a 2000mAh battery, the largest battery every seen in a Nokia smartphone and includes native support for wireless charging, via its Fatboy recharge pillow.
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