Nokia Forced to Slash Price of Lumia 900 Smartphone

Times are tough at Nokia and that appears to mean big savings for smartphone consumers. According to a new report, the firm has cut in half the price of its Lumia 900 smartphone. The device now sells for just $49.99 with a two-year mobile plan.

The Lumia 900 originally hit AT&T stores in April. At the time, it cost consumers $99, so long as they signed a two-year agreement.

However, two developments have forced Nokia to initiate a price drop. For one, it recently admitted that the device won’t be able to run a mobile version of Windows 8, Microsoft’s upcoming operating system. Although Microsoft has struggled to arouse much interest in Windows 8, setting limits on a phone only months after its release certainly detracts from the overall appeal of such a device.

Second, Nokia is seriously struggling to keep its head above water in a very competitive smartphone market. The firm is expected to report that it has slipped into the red when it unveils quarterly earnings later this week, with losses being in the neighbourhood of 236 million euros. Nokia’s struggles are mostly due to the fact that it was so late to enter the smartphone market, which allowed Apple and Samsung to gain market dominance.

The Lumia line, which uses Microsoft’s Windows Phone platform, has hardly affected this trend.

As a result of its financial difficulties, Nokia has been forced to initiate a major downsizing operation. It’s expected that the firm will lay off 10,000 workers worldwide in the next year or so.

Despite all this trouble, Nokia insists there’s nothing concerning about the Lumia 900 price reduction. “This move is a normal strategy that is put in place during the lifecycle of most phones,” noted Nokia spokesman, Doug Dawson, who added that such a move “allows a broader consumer base to buy this flagship device at a more accessible price.”

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