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It seems that Nokia Corporation’s (NOK - Analyst Report) Lumia 920 has given it a fighting chance against Apple Inc.’s (AAPL - Analyst Report) iPhone and Google Inc. developed Android-based phones. Nokia has seen strong demand for Lumia 920 since the device became available earlier this month, mainly attributable to the ongoing holiday season in U.S.

According to Forbes, Lumia 920 was out of stock at online retailer Amazon Inc. (AMZN - Analyst Report) and will take at least two weeks to reach consumers while AT&T Inc. (T - Analyst Report), Nokia’s exclusive partner for its flagship device has only the white model left in its shelves.

Nokia is doing well in other parts of the world particularly in Germany and Australia where the company has experienced sell outs of its flagship Lumia 920. The struggling handset manufacturer has reportedly received 2.5 million orders for Lumia 920 which is close to the 2.9 million Lumia series phones that it sold in the entire 3Q.       

However, Forbes suggests that though the data remain impressive, the out-of-stock situation in the stores could be due to low inventory position or as a result of the uptick in demand from the holiday shopping rush.     

Lumia 920 is the latest gamble from the Finnish handset manufacturer which runs on Microsoft Corporation’s (MSFT - Analyst Report) Windows Phone8 software. Lumia handsets are powered with rich features (PureView camera, 4GLTE technology, Windows 8 OS, and numerous apps), giving Nokia every chance of regaining its lost glory.

One of the primary reasons for the recent surge in demand for Lumia 920 is the lackluster product mix of iPhone 5 as compared to its earlier handsets. Nokia’s mapping technology gives it an edge over Apple whose faulty map service has been subject to heavy criticism. Additionally, the company has strategically priced the device at $99.99 which is $100 less than iphone5 and $200 less than Samsung’s flagship SIII. 

We remain optimistic that the company has at last found a winner in the form of Lumia 920 which has at least given them a ray of hope to gain some market traction. Nevertheless, the company should not rest on its laurels after this success and should continue efforts to revamp its falling handset business.

We retain our long-term Neutral recommendation on Nokia Corp. However, it holds a Zacks #2 Rank, implying a short-term Buy rating.

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