The company said it identified a software issue for which it has developed a solution. The problem had who had bought the Windows phone that went on sale from Easter Sunday.

Lumia 900 users have the option of updating their device with the software fix on or around Monday, or swapping their current Lumia 900 for an updated version. As a "gesture of goodwill" users who have purchased the device or will purchase one by April 21 will receive a US$100 credit to their AT&T bill, Nokia . AT&T is selling the phone at $100 with a two-year contract.

The move by Nokia has delighted users. "This is beyond a gesture of good will...this is the kind of a response by a company that cements customers for life," said user Jim Linehan in a response to the Nokia offer.

The Lumia 900 is seen as critical to Nokia's attempt to renew its presence in the U.S. market, and to Microsoft in its bid to counter phones running the Android operating system.

The software update will be available both through Zune on Windows and Windows Phone Connector on Mac. Nokia said late Wednesday in a reply to a question on its blog that it did not have an exact date for when the updated phones will arrive in stores, but any phone can be updated when the new software arrives on or around Monday.