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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

April 11, 2012 at 7:49 AM

[Updated] Nokia Lumia 900 has software glitch

The Nokia Lumia 900, launched with great fanfare this week, has a software glitch that causes some of the phones to lose data connection, Nokia acknowledged.

As a gesture of good will, the company said Wednesday in its official Conversations by Nokia USA & Canada site, it is giving people who’ve purchased a Lumia 900 — or will by April 21 — a $100 credit to their AT&T bill. (That means the phone is essentially free, as AT&T is selling the Lumia 900 for $99.99 with a two-year contract.)

Nokia also said a software update will be available via Zune on or around April 16, after which those who’ve bought a Lumia 900 already can swap their handset for an updated one if they choose.

The software glitch, Nokia said, was this:

In short, a memory management issue was discovered that could, in some cases, lead to loss of data connectivity. This issue is purely in the phone software, and is not related to either phone hardware or the network itself.

[Update 2:20 p.m.: Microsoft issued this statement: “We appreciate the swift action that Nokia has taken to address the firmware issue and do right by our mutual customers.”]

It hasn’t been a good day for Nokia.

The Lumia 900 is seen as Nokia’s great hope for renewing its presence in the U.S. smartphone market (as well as Microsoft’s best hope thus far to gain market traction for Windows Phone). Nokia’s advertising effort for the Lumia 900, ironically, has centered on how other smartphones have been beta test versions before the arrival of this model.

The Finnish phonemaker this morning also lowered its 2012 outlook — news that sent shares down 18 percent.

Nokia said it has sold 2 million Lumia handsets in the first quarter of 2012 and has “seen sequential growth in Lumia activations every month.”

In some good news, Nokia this morning showed a new version of the Lumia 610 which will include Near Field Communication (NFC), allowing users to make payments with their handsets.

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