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Nokia, T-Mobile goes for feature phone crowd: Will the bet work?

Summary: Nokia and T-Mobile aren't exactly the strongest tandem when it comes to invading the U.S., but the strategy and price for the Lumia 710 add up.

Larry Dignan

By for Between the Lines |

Nokia and T-Mobile rolled out the Lumia 710 and clearly plans to use price---$49.99 after a $50 rebate---as a weapon to grow market share. The goal: Target the feature phone crowd that wants to trade up to a smartphone.

The move is interesting on many fronts. First, T-Mobile, which is basically the value wireless brand now, is targeting the 150 million U.S. users who haven't bought a smartphone yet. Nokia is looking to make a splash and grab some market share.

Also see: Great Debate: Can Windows Phone 7 and Nokia become players in the U.S.?

As noted previously, Nokia and T-Mobile aren't exactly the strongest tandem when it comes to invading the U.S.

However, price may change that equation. The Lumia 710 is a value at that low price and Microsoft gets more exposure for Windows Phone. Microsoft and Nokia still have challenges since Android and Apple both have cheap phones too, but the Lumia 710 price might be right to gain market share.

In the end, Microsoft can't avoid the Windows Phone ecosystem question based on price. The iPhone 3GS is free and has a much stronger app selection.

Topics: Telcos, Mobility, Nokia

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9 comments
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  • Um, Larry . . .

    There's a huge difference between the Lumia 710 and a feature phone. @ $50, this is a tremendous value and not just for those who have feature phones. It will beat, hands down, any Android phone that hasn't been released in the last six months as a flagship Android phone.<br><br>As I've said many times over the last couple of months, M$ should be working aggressively to bring phones like the 710 and Radar to prepaid companies like Virgin Mobile. As usual, M$ is out to lunch when it comes to marketing. There are zero signs Verizon is going to cozy up to WP anytime soon. As such, they need to use prepaid as a means to out flank Verizon. In fact, they should give VM marketing money to promote their flat $45 a month charge unlimited text and web with 1,200 anytime minutes versus Verizon's egregious costs. It's a no brainer.<br><br>And please stop with the app selection dribble. A first-time smartphone user is going to be overwhelmed by 45K apps, with Apple's 10x number being 10x more challenging.
    jjworleyeoe
    Reply Vote

    • RE: Nokia, T-Mobile goes for feature phone crowd: Will the bet work?

      [i]As I've said many times over the last couple of months, M$ should be working aggressively to bring phones like the 710 and Radar to prepaid companies like Virgin Mobile. As usual, M$ is out to lunch when it comes to marketing. There are zero signs Verizon is going to cozy up to WP anytime soon. As such, they need to use prepaid as a means to out flank Verizon. In fact, they should give VM marketing money to promote their flat $45 a month charge unlimited text and web with 1,200 anytime minutes versus Verizon's egregious costs. It's a no brainer.[/i]

      They're not that smart, thank God. It's either a big carrier or nothing.
      ScorpioBlue
      Reply Vote

    • RE: Nokia, T-Mobile goes for feature phone crowd: Will the bet work?

      @jjworleyeoe ...M$ should be working aggressively to bring phones like the 710 and Radar to prepaid companies...

      Why? Is prepaid somehow better? I have impression that only people who are looking to spend the least are looking at prepaid options. They usually are not interested in smartphones with data plans.
      paul2011
      Reply Vote

      • RE: Nokia, T-Mobile goes for feature phone crowd: Will the bet work?

        @paul2011, you forget the kids. There are millions of them, pre-teens and early teens, in need of a cheap, flashy phone, and their parents (like myself) wary of adding them to their limited plans. Here comes t-mobile. Nice and easy. I already bought her a sliding phone form t-mobile - apparently this is what they all use in 6th grade in our school. If she asks for a smart phone, I will buy Lumina for her.
        ForeverSPb
        Reply Vote

  • Is this phone prepaid?

    If not, I don't such a huge value in it just because of the $49 price. The cost of the post-paid plan with contract must be taken into account
    markbn
    Reply Vote

  • RE: Nokia, T-Mobile goes for feature phone crowd: Will the bet work?

    MS should look at their "partners" like AT&T. Why in all paper and electronic spam I get from them I cannot see a single windows phone ad? It is only iPhone, Android and occasional Blackberry but never windows phone. Who is paying them NOT to advertise? Are carrier penalized for Windows Phones? What is going on?
    paul2011
    Reply Vote

  • WP7 needs better advertising...

    As others have pointed out, Microsoft (and by extension, Nokia) has a marketing problem. Anyone who's seen the ads for Droid, Samsung or Apple know why they're successful--their ads are cool, entertaining, & they make you want to buy their product. The WP7 ads I've seen are dull & offer no reason why anyone should consider buying one over the others... which is why most consumers aren't. I say this as a very satisfied WP7 owner who is dissatisfied with Microsoft's lame marketing attempts. If that doesn't change soon, WP7 (which deserves a better name) will fail. They're running out of time...
    metromalenyc
    Reply Vote

    • nokia's marketing is fine

      @metromalenyc nokia's marketing is doing swell in the markets that they're distributing to (aka Europe and Asia). only time will tell how well they'll market in the US.

      but overall i agree that microsoft needs to pay more money to ATT to market their windows phones!
      kidjenius
      Reply Vote

    • RE: Nokia, T-Mobile goes for feature phone crowd: Will the bet work?

      @metromalenyc

      Ironically...I thought the very first WP7 commercial was the best and probably the only one that stuck in my head. Their message was something like people spend too much time on their smartphones where WP gets you in and out.

      I just remember the guy sitting in bed playing on his phone while his wife is standing there in a french maid outfit giving him a look like, 'are you freaking kidding me?'
      dtdono0
      Reply Vote
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