Nokia's flagship phone price cut in half

Nokia's flagship phone price cut in half

Summary: Barely three months after its launch, the price of Nokia's flagship phone has been slashed in half.

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TOPICS: Nokia, Smartphones
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Nokia's Lumia 900 Windows phone, barely three months after its launch, is now available for $49.99 based on a two-year contract -- falling from its original price tag of $99.

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Potentially reduced as an effort to staunch its wounded market share, in light of rivals including Apple and Samsung, the phone manufacturer's U.S. price drop for the Lumia 900 is likely a bid to entice new customers to sign up on long-term deals rather than embrace rival firms.

Nokia's phone is sold at AT&T Inc. stores, and features a 4.3-inch screen, 1.4-gigahertz processor and 8-megapixel camera.

Nokia spokesman Keith Nowak told Reuters that the price cut "is part of our ongoing lifecycle management, which is jointly done between Nokia and carrier customers.", noting that Samsung has also cut the price of its Galaxy S II, which was launched before the Lumia 900.

Sales of the flagship phone have been sluggish, and took a further blow when Microsoft revealed that its new Windows 8 operating system, released later this year, would be incompatible with the model. However, Nokia has said that the phones would still have "significant upgrades" even if Windows 8 is not an option for consumers. 

Once a dominant player in the cell phone industry, Nokia is now losing out to rival firms who embraced smartphone technology earlier. In the market for lower-end, less expensive phones, the company is currently experiencing a gradual loss in market share.

The Finnish phone maker is expected to report second-quarter earnings on Thursday.

Topics: Nokia, Smartphones

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18 comments
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  • Nokia's flagship phone price cut in half

    You mean lowered by $50.

    Don't forget there is a contract required to make the phone $49. if the phone would be slashed in half, then either their would be a 1 year contract or the phone would be $0 with 2 year contract.

    Why does zdnet always try to make thing sound more worse then things are?
    ShqTth
    • Exactly

      And what's sad is if it were Apple or Google product, it would be reported in a different tone. They would not spin it like this. Huge double standard when it comes to Microsoft/Nokia and especially RIM.

      Apple = iNaive, buy anything made with an Apple logo and a lowercase i in front of the name. In fact, imagine how well the Lumia 900 would be doing right now if it had an Apple logo on it? You know how true this is and it's sad.

      Google = I will read and steal all of your information. See the Gmail man -> http://www.youtube.com/watch?v=TDbrX5U75dk
      mikroland2.0
      • You're so full of crap!

        There was a small bug in OS, and suddenly it's "locationgate!!!!". Meanwhile Microsoft was keeping a database of locations with the phones WiFi address on remote servers. Yet there wasn't one story about how bad that is, and Microsoft testified before congress and claimed they weren't tracking users. If anything ZDNet give Microsoft a pass on many things Apple would get grilled for.
        Jumpin Jack Flash
  • Soon to be unsupported platform

    Microsoft has supplied it's partner Nokia a soon-to-be dead platform. Nokia: give it away for free and charge Microsoft for the payment. Microsoft released Windows Phone 7 as test product, and people paid for it.
    root12
    • Really?

      Windows Phone 7.8 is nothing? Nokia has said they will continue to support the phone. I love my Lumia 710 that I bought off contract because I knew Windows Phone 8 would bring new hardware and I would want it.

      Here's a fun little tidbit for ya root12- Microsoft hasn't announced any features other than hardware ones that 8.0 gets that 7.8 will not get. That said, Microsoft hasn't announced much OTHER than hardware and the new start screen. There are several instances where people with inside knowledge have said more is coming to both 7.8 and 8.0
      ikissfutebol
    • Not at all unsupported. Still a better upgrade story than android.

      And a much better phone right out of the box as well. WP7 as is is a better smartphone platform for consumers than android. Much better usability and much better security.
      Johnny Vegas
  • Bloggers need clicks...

    Bloggers need clicks and hence the stupid headline..., this quarter will be tough for nokia due to the transition from wp7 to WP8 and hence they need to manage their sales until the new platform is ready with sweetened deals... WP8 is the next generation platform and will be around for a long time to come...nokia has nothing to worry...only the haters need to worry.
    owllnet
    • I also believe Nokia needs to clear its inventory...

      for the release of WP8. And i believe MS kept Nokia in the loop about their WP8 plans, as I believe it could be seen in the WP8 demo that a protoype Nokia phone was being used.
      nessrapp
      • Maybe in the US

        I remember hearing that Nokia wanted to keep 7.8 alive and kicking for lower-end phones in emerging markets... similar to why Tango can run on 256 RAM. Nokia got big because they dominated the markets few else cared about. Nokia plans to go back to those places because those markets recognize Nokia for their quality handsets.

        WP in the US is not as popular as other markets, just like Nokia in the US wasn't as popular and loved as in other markets.
        ikissfutebol
  • Better move

    Make the phone $99. On a one year contract.

    The issue is that many people are skiddish about trying a new platform based on a pitch from a sales guy who likely has an iPhone or Android handset in his own pocket, and being locked into it for two years. Make it the same $99 price, but make it only a year. This way, people won't feel like they're in for a long term commitment and shunning 'the devil they know', but still force them to give it a long enough try to establish inertia in the platform. A 60 day guarantee would be nice, but everyone would return it simply because it's different, not necessarily because it's different in a bad way.

    Joey
    voyager529
    • Smarter move

      Buy your phone for full price off-contract and go prepaid. You can always buy last years model at a deep discount. If you like the platform, you can buy the latest and greatest whenever it gets launched (never more than a year it seems) and still end up having a total bill after two years lower than signing a two year contract.
      ikissfutebol
  • Circling the Plughole

    Poor loyal Microsoft users, getting shafted twice now--jumping from the Windows Mobile sinking ship to Windows Phone 7, only to discover that is now heading rapidly to the bottom as well.

    I suppose to its credit, it took 3 whole months before this Windows Phone fire sale, as opposed to Kin, which didn't even last a month.
    ldo17
    • I'm confused...

      Clearly all WM users did not become WP users. Clearly all WP 7 users will not become WP 8 users, just like all iOS 4 -> 5, 5-> 6 users do not stick around and how all...oh wait, most Android users are still stuck on 2.X. I would still tell my friends and family in desperate need of a new phone to pick up a Lumia 710 or something else that's inexpensive as opposed to waiting until Windows Phone 8. And I know a fair number of people that have been waiting for WP8 since long before the Lumia was released.

      It is probably a fair assumption you have only read about Windows Phones and never actually touched one, similar to many haters, let alone owned one for a few days. I find it much easier to use than my wife's iPhone where I have to know which app is best for which thing, which apps can sorta communicate with one another, etc. I could function perfectly fine with my phone in stock condition, app-free. Imagine using an iPhone without any apps... I can't!
      ikissfutebol
    • Totally wrong. Both WM and WP users got the best user experience on the

      best smartphone os available at the time. The lumia 900 is still the best phone you can buy right now and youll still get more updates that an android phone.
      Johnny Vegas
  • very well said.

    >>just like all iOS 4 -> 5, 5-> 6 users do not stick around and how all...oh wait, most Android users are still stuck on 2.X.
    I couldn't have said it better myself. :). People are forgetting the thing called "progression".
    Ram U
  • Nokia's flagship phone price cut in half

    Happens with most phones, they all go to a lower price after a period of time.
    Loverock Davidson-
    • "...after a period of time..."

      ...which is usually longer than 3 months (!)

      This is Kin territory.
      pdq
      • I heard

        That next month the Lumia 900 is going in the "Buy one for $29.99 get three free" bin. It was going to go there this month but at the request of Microsoft AT&T is holding ff an extra month
        Jumpin Jack Flash