Nokia prices Lumia ‘aggressively’

The Nokia Lumia 820 starts at $49.99 with a two-year wireless contract from AT&T while the flagship Lumia 920 phones start at $99.99 with the same contract terms.

That’s much more aggressive than what I would have thought. Seems they are going straight for the low-end market.

  • Jim,

    They need market share, so they have no choice but to price aggressively. I’m not sure that it’s a case of targeting the low-end of the market, rather making sure that price is not a barrier to adoption.

    That might mean that they end up with more low-end adoption – but so be it – they might just end up with a bit more of the high and middle end users that they really need.

    (Assuming that low-end users don’t use smartphones in a smart way as opposed to middle and high end that spend more easily on digital services such as apps.)

  • This could backfire on them. Lots of people are learning the difference between “cheap” and “premium”, and without a premium product they may have difficulty getting a foothold.

  • I would love to see what the margins are. I can’t believe this pricing model is going to help Nokia’s financial situation.

    • xynta_man

      There are basically no margins there. As far as I can understand, currently Nokia wants to achieve huge volumes of WP smartphone sales, to get itself some market position and economies of scale.

    • If they can show they are gaining market share, I bet they can find the money to finance themselves. I still think Microsoft’s desktop market share is an advantage for them in a post windows 7 world.

    • Tvaddic

      AT&T is cutting them a deal, the carriers want to live in a world with 3 dominant operating systems, with 3 compelling choices, customers might upgrade their cell phones more.

  • They could have pulled off $199 if it wasn’t ridiculously thick and heavy by today’s standards.

  • I disagree. To me it’s a sign of their realisation of the bad position they are in. I bet they’re trying to get e foothold in the market using a penetration pricing strategy.

    I’m not saying that it’s a particular good way to do it and Nokia my shoot itself in the foot with it, but there’s not much they can do.

    • I agree with your statement. They need market share, price cannot be an additional barrier for them.

  • What’s all that smoke going up? Oh, it’s Nokia profits!