Nokia has decided to cut down the cost of its flagship model by one-half, barely 3 months after it was launched, as the firm tries to stanch the losses that it has been seeing due to a decreasing market share as compared to the rivals Apple Inc and Samsung Electronics Co.
The price of the Nokia Lumia 900 windows Phone will be cut down from $99 to $49.99 with a 2 year agreement, according to Nokia Spokesperson Keith Nowak on Sunday.
The phone is being sold at AT&T Inc stores and Nokia has said that the price cut was a part of the ongoing lifecycle management activity that is jointly carried out between the carrier customers and Nokia.
The spokesperson said that the price cut at this stage was hardly unusual at the lifecycle stage of the smartphone, noting that even Samsung had cut down the price of Galaxy SII that was launched before the Lumia 900.
Nokia, which was once the leading provider of mobile phones, was late in embracing the smartphones and has off late seen a losing market share in the sector of less expensive mobile devices.
The Nokia Lumia 900, having a 1.4 Ghz processor, a 4.3 inch screen and 8Mp camera largely uses the untried software from Microsoft Corp.
The sales for the flagship version have been low and they took another hit when Microsoft announced that the current devices wont be able to upgrade to the next version, Windows 8. This would render the current devices obsolete.
Nokia had said that it will be slashing almost 10,000 jobs last month and the handset business could see larger than expected losses. All the major credit rating agencies have rendered the stock of Nokia as “junk”.
According to International data, mobiles running on Google’s Android OS would be comprising a 61 % share in the global smartphone market in 2012 while the share of Apple iPhone would be around 20 %.
The firm will be reporting its results on July 19 and is expected to post losses of $289 million in the handset business up from the $156 million of the last quarter.