Nokia reduces the price of flagship phone by 50%

Nokia is all out, to push the sales of phones, that won’t be getting the upgrade to Windows 8. Remember, we told you about the ‘Amazing Money Back Challenge’ campaign done by Nokia India, where customers who buy Lumia 800 and 710, can return it within seven days for a full refund if they aren’t satisfied with it. It is reported that Nokia U.S. has reduced the price of its flagship phone i.e. Nokia Lumia 900 by 50 percent.

The U.S. network AT&T, through which the Lumia 900 is sold has slashed the rate from $99 to $49.99 with a two-year contract. The price at which the phone is being offered is half of what it was, when launched three months back.

According to a spokesperson from the Finnish Telecom, this cut in price is part of its ongoing lifecycle management, aimed at making this flagship device, available at an accessible price to a broader consumer base.

The smartphone in question, Nokia Lumia 900 features a 4.3-inch screen, 1.4-gigahertz processor and 8-megapixel camera and runs on Windows Phone 7.5 OS. The only hitch is, that the device will not get the Windows Phone 8 upgrade, which puts it in the danger of getting obsolete.

Nokia was a late entrant in the smartphones segment and is constantly losing its share in basic mobile phone segment as well. Nokia is right now using the Windows Phone OS for its smartphones, which has a far more lower market share when compared to Apple’s iOS and Google’s Android platform.

Nokia is already planning to cut 10,000 jobs, and expects that its handset business would post a larger-than-expected quarterly loss, which is due on July 19, 2011. So it wouldn’t be wrong to say that this price cut is Nokia’s effort on cutting down on sales losses.

Will this move help Nokia or will it suffer the same way RIM did in the past year.


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