Shares of Nokia saw a plunge of 16 percent on Wednesday, following the company’s announcement of its new and latest Windows 8 smartphone. Made with new Windows software, Nokia Lumia was the latest initiative by the firm to recover from loses, but it looks like, Lumia failed to impress the company’s investors.

Nokia and Microsoft partnered to step into the market of smartphones. But the faint remarks about the latest innovation seem to have cast a shadow over the joint venture of both the firms.

A failure to break into the market via Lumia can have serious repercussions for Nokia. The Finnish company, who was once a dominant leader in the smartphone market, is now lagging far behind its rivals.

Nokia and Microsoft came together on 2011 for Windows 8 smartphones. Hoping for Nokia to pick up after the downfall is expecting a little too much as there is lot of competition.

Stocks of Nokia closed at $2.38 per share.

Nokia introduced the Lumia 920 and the Lumia 820 Wednesday at a press event in New York. The smartphone has features such as wireless charging and a camera that minimizes photo blur.

As Apple, Motorola, and HTC are also coming up with their latest smartphones this month, Nokia might not get time to get a place in consumers’ heart.

Microsoft also has a lot at stake, with venturing into Windows operating system that would work on computers, laptops and tablets. Microsoft also launched a new Surface tablet this year.

Showing how much of Lumia’s success depends upon Microsoft and Nokia, Steve Ballmer, chief executive, Microsoft showed up at the unveiling of the Lumia phones, where he talked of how Nokia phones embodies the best attributes of the Windows Phone software.

With latest Lumia, Nokia has entered the competitive market with Apple, Google’s Android software smartphones along with other device makers for Windows software.

Now Nokia can just hope it plunges into consumer’s heart with plethora of smartphones coming up soon.