As if Nokia doesn't already have an uphill struggle selling smartphone buyers on its sleek Lumia devices, the lack of an upgrade for existing Windows Phone 7.5 users threatens to derail the goodwill they've built thus far.
Microsoft's announcement Wednesday that current Windows Phone devices can't be upgraded to the forthcoming Windows Phone 8 platform wasn't the news existing users wanted to hear.
But it's even worse for Finnish partner Nokia, whose smartphone sales could dry up over the summer.
Potential buyers have been lured by Nokia's attractive Lumia handsets, in particular the Lumia 900 which debuted here in the U.S. as an AT&T exclusive.
Hold, please
However, now that Microsoft has gone on record about the future of Windows Phone 7.5 handsets, who's going to invest in a device that can't run the next generation software?
"Operators and users will hold on until the new devices are in the market this coming autumn," cautions analyst Malik Saadi with Informa Telecoms & Media in London.
"This will have a serious impact on Nokia's financial performance this quarter."
For their part, Nokia and Microsoft are attempting to appease existing handset owners with an upcoming update to Windows Phone 7.8, which brings a few of the new Windows Phone 8 to current devices, most notably the revamped Start screen.
However, the clock is ticking for Nokia, whose first quarter smartphone sales have already dropped a precipitous 52 percent since shacking up with Microsoft and its underdog mobile OS.
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