Nokia slashes Lumia 900 price
Nokia has slashed the price of its flagship Lumia 900 smartphone, barely three months after its launch.
The US price of the Lumia 900, which runs Microsoft’s Windows Phone 7, has been reduced to $49.99 from $99 with a two-year agreement, Nokia spokesman Keith Nowak said. The handset is available at no upfront cost on some contracts in the UK, but only became available in May.
Nowak said the US price cut “is part of our ongoing lifecycle management, which is jointly done between Nokia and carrier customers”.
The spokesman also said a price cut is not unusual at this time in a smartphone’s life cycle, noting that Samsung has cut the price for its Galaxy S II – launched before the Lumia 900 and since superseded by the Galaxy S III.
Despite generally positive reviews, sales have been slow – and Nokia took a further hit when Microsoft said current phones will be unable to run Windows Phone 8. Nokia offered a full rebate on the handset to early buyers, after a software bug was discovered.
Last month, Nokia said it would cut 10,000 jobs, and that its handset business would post a larger-than-expected quarterly loss. All three major credit rating agencies have downgraded Nokia to “junk” status.
Smartphones using Google’s Android system are predicted to grab 61% of the global market in 2012, while Apple’s iPhone could capture more than 20%, IDC said last month.
Nokia is expected to report second-quarter results on July 19. Analysts polled by Reuters last week expect a loss in the handset business of €236 million, up from €127 million in the first quarter.