Nokia Halves Price of Lumia 900 in U.S. Market Share Grab

From DailyTech: Nokia is desperate for success in the smartphone business as its market share continues to decline. The tie up between Nokia and Microsoft, however, has yet to yield impressively ripe fruit. One of the first major smartphones offered after the partnership was the Lumia 900, and sales for the smartphones started briskly. However, sales of the Lumia 900 have now declined significantly.

In a bid to increase the sales of the Lumia 900 again, Nokia has cut the price of the smartphone in the United States to half of its original price. The Lumia 900 will now sell for $49.99 with a new two-year agreement. When the phone launched roughly 3 months ago it sold for $99 with a new two-year contract. The announcement of the price cuts came from Nokia spokesman Keith Nowak over the weekend.

Nowak said, "[The price cut] is part of our ongoing lifecycle management, which is jointly done between Nokia and carrier customers."

Nowak also insists that a price cut so soon after the smartphones launch isn't unusual and pointed out that Samsung cut the price for the Galaxy S II. The problem with that statement is that Samsung already has a follow-up to the S II with the Galaxy S III, so a price cut makes a lot more sense for Samsung.

Nokia is struggling to compete in the smartphone market against the iPhone and Android-powered devices. Nokia stocks have also been downgraded to "junk" status by all three major credit rating agencies. Nokia is also expected to report a loss this week when it offers its Q2 financial results.

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