Nokia left red-faced after Lumia 900 launch hit by software glitch

Firm stumps up $100 per customer in compensation

Nokia has been left red-faced after admitting that its recently launched flagship Lumia 900 smartphone contained a software glitch that caused customers to lose their internet connection.

Writing on the firm's Nokia Connections blog, Jo Harlow, executive vice president of smart devices, said that the firm had identified the issue soon after the phone's release and had already worked to provide a fix.

"Soon after this flagship device began selling, we identified a software issue. In short, a memory management issue was discovered that could, in some cases, lead to loss of data connectivity," she said.

"This issue is purely in the phone software, and is not related to either phone hardware or the network itself. As a proactive and prudent measure, we decided to take immediate action. We have identified the issue, and have developed a solution."

Harlow said that an update to the software would be made available as a free upgrade via Microsoft's Zune software from 16 April, or customers can return the device for a newer version in store.

Furthermore, the firm will also offer customers affected by the glitch with $100 of credit to cover their bill with AT&T, a financial hit that could cost the firm millions.

Despite the upheaval, Harlow said the firm was pleased with the interest in the device since it went on sale this Monday in the US, with the UK launch for the device scheduled for later this month on 27 April.

The issue is unlikely to have pleased Microsoft, though, which is heavily reliant on Nokia to help drive sales of its Windows Phone operating system, which is currently lagging far behind Android and iOS in terms of market share.