Nokia halves price of Lumia 900 as Windows Phone struggles persist
Nokia has cut in half the price of its flagship Lumia 900 smartphone, a device won't run Microsoft's forthcoming Windows Phone 8 platform refresh.
The Finnish handset maker is attempting to spur sales of the Lumia 900 in the wake of Microsoft's announcement that Windows Phone 8, set to launch this fall, will not run on legacy devices. With a new two-year contract, the Lumia 900 can now be bought for just $49.99, down from its original $99.99 price tag.
Shares in Nokia fell over 3 percent on Monday, as noted by Reuters, as investors are concerned that the price cut on the Lumia 900 is a "sign of desperation" as Nokia struggles to compete with Apple's iPhone and Samsung's Android-based handsets.
Nokia's flagship phone took a major blow last month, when it was revealed that the Lumia 900 won't be upgradeable to Microsoft's Windows Phone 8 platform. Instead, Microsoft plans to offer an update in the form of Windows Phone 7.8 that will add some of the Windows Phone 8 features to the legacy platform, such as an updated Start screen with customizable tile sizes.
Nokia has bet heavily on the Windows Phone platform in transition away from its own Symbian operating system. The company was once dominant in the smartphone market, but failed to respond as the iPhone and Google's Android took over.
Last month, Nokia also announced plans to ax 10,000 jobs by the end of 2013 in an effort to cut costs and turn the company around. The company's credit rating is also labeled junk by all three major credit rating agencies.
The Finnish handset maker is attempting to spur sales of the Lumia 900 in the wake of Microsoft's announcement that Windows Phone 8, set to launch this fall, will not run on legacy devices. With a new two-year contract, the Lumia 900 can now be bought for just $49.99, down from its original $99.99 price tag.
Shares in Nokia fell over 3 percent on Monday, as noted by Reuters, as investors are concerned that the price cut on the Lumia 900 is a "sign of desperation" as Nokia struggles to compete with Apple's iPhone and Samsung's Android-based handsets.
Nokia's flagship phone took a major blow last month, when it was revealed that the Lumia 900 won't be upgradeable to Microsoft's Windows Phone 8 platform. Instead, Microsoft plans to offer an update in the form of Windows Phone 7.8 that will add some of the Windows Phone 8 features to the legacy platform, such as an updated Start screen with customizable tile sizes.
Nokia has bet heavily on the Windows Phone platform in transition away from its own Symbian operating system. The company was once dominant in the smartphone market, but failed to respond as the iPhone and Google's Android took over.
Last month, Nokia also announced plans to ax 10,000 jobs by the end of 2013 in an effort to cut costs and turn the company around. The company's credit rating is also labeled junk by all three major credit rating agencies.
Comments
Lumia 900 is half price three months after launch while I've seen Android phones for $1 on contract three months after launch.
paddles! clear!
Death. Spiral.
It'll be interesting to see who goes tits up first - Nokia or RIM...
I'm betting on Nokia. RIM at least has their service business to bring in some revenue - their message network. Nokia's got nothing much apart from their now-worthless phones.
Is it? Oh dear, that's a problem.
And they say that Android phones are MORE expensive than iPhones, and "people still want them more".
Another one bites the dust
Another one bites the dust
And another one gone, and another one gone....
Somehow, a song popped into my head. Sorry.
But it's not half price is it as far as Nokia is concerned. It was $400 before subsidy and now it's $350.
This is the kind of price reduction you would expect from any manufacturer except Apple (who just takes increased profit rather than try to generate more sales from lower prices). It is hardly a comparably bad sign for Nokia as most of the other harbingers of poor sales and being Osborned by Ballmer.
Exactly. It's probably closer to a 10-15% price cut from Nokia. Hardly a disaster.
For comparison, Apple released the iPhone at $600 without subsidies. It was only later that they introduced a $199 phone without subsidies. Would it have been accurate at the time to say that Apple's iPhone was doomed because they had to cut the price by 2/3? Obviously not.
Besides, Nokia has a challenge. The current Nokia will not be upgradeable. While that's OK in Android-ville, most people prefer the ability to upgrade their phones - which means this phone has a disadvantage and a price cut is not unreasonable.
Quote:
Originally Posted by sunspot42
Death. Spiral.
It'll be interesting to see who goes tits up first - Nokia or RIM...
I'm betting on Nokia. RIM at least has their service business to bring in some revenue - their message network. Nokia's got nothing much apart from their now-worthless phones.
You me both, shorting NOK:ADR pretty hard, smiling like its christmas
At least RIM has their own platform, revenue stream as you said, etc. Licensing out the BB platform is something I'm really hopping for, its too much iOS vs Android now days, it would be nice to have someone else in there fighting... (No, MS is to pathetic to count as fighting, they are like a turtle laying on its back)
Microsoft never answered the question of why anyone should buy a Windows phone instead of an iPhone or Android. They're in for similar struggles when their tablets come out regardless of whose name is on the hardware. The tablet situation could be worse once people try running actual Windows apps on a Surface only to realize their Windows apps were never designed for a touchscreen. It's better to have someone think "It's great... if only it had more apps" rather than "It sucks at what it's supposed to be able to do."
Quote:
Originally Posted by sunspot42
Death. Spiral.
It'll be interesting to see who goes tits up first - Nokia or RIM...
I'm betting on Nokia. RIM at least has their service business to bring in some revenue - their message network. Nokia's got nothing much apart from their now-worthless phones.
If that device ran iOS, you'd be singing a different tune. That phone is gorgeous. Microsoft just sucks at marketing and partnering. It's like they can't figure out how NOT to stab the competition to death, even when it's the guys on their own team.
To me, this translates into yet more lost time, for Microsoft's phone platform. They'll have to make up for this lost time some other way. I doubt they can. You know the proverb, if you're late to the party, your date better be hot. Microsoft's expected to bring an extra-super hot date with Windows Phone 8 now. Their only advantage is the ubiquity of the Windows OS. That's about all.
Quote:
Originally Posted by jragosta
Exactly. It's probably closer to a 10-15% price cut from Nokia. Hardly a disaster.
For comparison, Apple released the iPhone at $600 without subsidies. It was only later that they introduced a $199 phone without subsidies. Would it have been accurate at the time to say that Apple's iPhone was doomed because they had to cut the price by 2/3? Obviously not.
Besides, Nokia has a challenge. The current Nokia will not be upgradeable. While that's OK in Android-ville, most people prefer the ability to upgrade their phones - which means this phone has a disadvantage and a price cut is not unreasonable.
That analogy doesn't work because Apple didn't have competition from other modern smartphones when the iPhone was launched. They introduced a whole new category of device.
Nokia: sleep with dogs, wake up with fleas.
Good thing Win8 will save them. (rolls eyes)
Hop in the wayback machine to 2007 when the iPhone came out. It hardly made a dent in the mobile sphere and it wasn't until the 3G that it took off. Here we are 5 years later. And Success! Agreed!
But if I put an iPhone in your hands in 2006 what would your reaction be?
Back then Motorola ruled the world, and it's phones sever pretty awesome. Remember the RAZR?
My point is, the Nokia Lumia 900 isn't even 6 months old... and fighting it's way up into the market.
Simply dimissing it as stupid, as dying, as Microsoft sucks - is moronic. There's A LOT of ex-iPhone users using the Nokia Lumia - including me... because it's literally a better OS. No crashes, buttery smooth. And per Steve Wozniak - it's like Steve Job got reincarnated at Microsoft.
And why the hell would Steve Wozniak say that? Because it's that good of a phone/OS.
Step away from the punch gentlemen. Apple NEEDS competition. Apple only makes a great iPad/iPhone NOW because 10 years ago, APPLE was the underdog.
Why is Apple making a 4" phone? Why is Apple making a 7" tablet? Why is Apple making an HDTV?
Because COMPETITION is making them offer it. Sure Amazon maybe sold 6 Million Kindles, but that's 6 million less iPads. Sure Samsung may suck with their 4" phones, but they sell as many phones as Apple does.
Don't root for companies who are innovating and hungry to die gentlemen.
If they succeed and compete, it allows Apple to give you better products.
Or are you guys really that much into mediocrity with your 5 year-old OS?
Quote:
Originally Posted by jragosta
Exactly. It's probably closer to a 10-15% price cut from Nokia. Hardly a disaster.
For comparison, Apple released the iPhone at $600 without subsidies. It was only later that they introduced a $199 phone without subsidies. Would it have been accurate at the time to say that Apple's iPhone was doomed because they had to cut the price by 2/3? Obviously not.
Besides, Nokia has a challenge. The current Nokia will not be upgradeable. While that's OK in Android-ville, most people prefer the ability to upgrade their phones - which means this phone has a disadvantage and a price cut is not unreasonable.
Most people prefer to upgrade their phones? What makes you say that. Very few people outside the iPhone base seem to. Very few in Android-ville as you term it. But Android-ville is most people!
But agree with your first point. Very misleading headlining "halves price".
Quote:
Originally Posted by jeffreytgilbert
If that device ran iOS, you'd be singing a different tune.
And if my grandmother had wheels, she'd be a wagon. Sadly, it doesn't, so I'm not.
Can you install iOS6 on iPhone 1 or 2? Can you install Icecream on G1 etc? The answer is NO! There is always a limit on upgrading, and that is true for every device or laptop etc. WTF?
{citation needed}
Why would you think they're actually making an HDTV? People have been saying that for almost ten years.
LOL. No one ever got fired recommending Microsoft. Not yet. Stephen Elop still has a job.
Windows CE (later renamed Windows Mobile) was supposed to be a clean, portable (and already ported to ARM) version of Windows without the legacy DOS crap. Now Microsoft has dumped this supposedly clean and legacy-free version of Windows with some new version of legacy Windows that's ditched the legacy stuff (like DOS, x86, and desktop) and ported to ARM. It's like they re-created Windows CE/Windows Mobile with Windows Phone 8 and RT. Only without compatibility with any of those operating systems or legacy Windows. Nokia signed up for Microsoft chaos.