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Jan. 23 (Bloomberg) -- Nokia Oyj’s first phones running Microsoft Corp. software may have sold enough units last year to help rebuild ...
What price a Nokia Windows Phone?
Days after Nokias Lumia 710 arrived on store shelves, big-box retailer Wal-Mart began offering the midrange smartphone for free with a two-year contract. Tech writers and pundits immediately commenced to chattering over the implications of such a move, including whether it meant that Nokias nascent Windows Phone efforts are already in deep trouble.
Yet T-Mobile and Best Buy continue to sell the device for the regular $49.99 with two-year contract. In light of that, Wal-Marts price reductions seem less a sign that the Lumia 710 is in trouble right out of the gate, and more one companys attempt to give itself an edge over the competition.
That being said, Nokia is apparently dealing with some pricing pressure in other markets. In the U.K., another country where Nokias looking to make a dent with its new smartphone line, carriers apparently plan to sell the Lumia for a price lower than that recommended by the Finnish phone manufacturer.
There is always a bit of pushing over price and in particular if the handset is seen as weaker, an unnamed source told the Financial Times Jan. 18. The Lumia range needs a boost. But drastically low prices could also interfere with any future attempt by Nokia to seed the market with more midrange smartphones.
Nokia and Windows Phone exited last weeks Consumer Electronics Show (CES) with a fair amount of buzz, largely on the strength of the newly announced Lumia 900. With a 4.3-inch display, 1.4GHz Qualcomm Snapdragon processor, and the latest version of Microsofts Windows Phone software, Lumia 900 could very well have an impact on the higher end of the smartphone market when its released (reportedly) sometime in March.
Meanwhile, Nokia is betting that the Lumia 710 will appeal to those in the market for a midmarket device. During CES, Greg Sullvian, senior product manager for Windows Phone, told eWEEK that Windows Phone devices by various manufacturers would aim for customers across the price spectrum. Nokias emerging smartphone portfolio seems to mirror Microsofts strategy in miniature.
In any case, that strategy is still very much in the rollout stage. That most likely makes proclaiming price cuts as a sign of trouble somewhat premature.
