Some models of the latest Nokia Lumia 900 series of smartphones have been hit by a bug, according to a statement issued by the manufacturer.

As the bug is causing users to lose connection data, Nokia is offering $100 (£63) as call credit balance until it fixes the “memory management issue” by mid-April. Fitted with Microsoft’s latest Windows Phone technology, the Lumia 900 is set to hit the UK market by the end of this month.

Finnish firm Nokia is still the world’s biggest handset manufacturer, but the bug can harm its prospects of competing with Google and Apple on even grounds, analysts note, highlighting that despite being the largest global supplier of mobile phones, Nokia is still lagging behind in the smartphone sector.

Commenting on the current issue, the company said in a statement that Lumia 900 phones did not face any problems since its launch, until a problem in the handset’s software was detected.

Nokia made it clear that the memory management issue had nothing to do with the phone’s hardware or coverage. Those who are troubled by the bug can exchange their handsets with an updated Lumia 900 that is available on the market, the firm said on its website.

Predicting that the bug might seriously affect Nokia’s chances in the smartphone market, tech analyst Carolina Milanesi said, “It’s like they stalled their engine when everybody is looking at them at the start of their race.”

However, Nokia’s alertness in addressing the problem and offering a quick solution has been lauded by some experts. “I have been impressed by their forthright, aggressive, and undoubtedly costly response”, Boston-based analyst John Jackson said.