Nokia cuts Lumia 900 price in half

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The Lumia 900, Nokia’s flagship phone that has been in the U.S. just a few months, has had its price cut in half.

The former $99 Lumia 900, which runs on Windows Phone 7, saw its price drop to $49.99 early Sunday on AT&T;’s website.

Price cuts for phones aren’t rare, but one so soon after a phone hits the market is.

“This move is a normal strategy that is put in place during the life cycle of most phones,” Nokia spokesman Doug Dawson said in an email to the Wall Street Journal. It “allows a broader consumer base to buy this flagship device at a more accessible price.”


A more likely reason for the phone’s price drop may be its inability to upgrade to Windows Phone 8 upon its launch this fall.

Last month, Microsoft previewed its mobile operating system’s upgrade and hurt the value of all current Windows Phones by announcing that they wouldn’t be able to fully upgrade. Rather, current phones, including the Lumia 900, will be able to bump up only to Windows Phone 7.8, which will look like Windows Phone 8 only on the surface.

Since launching in April, the Lumai 900 has sold about 330,000 units in the U.S., according to Asymco. Meanwhile, Nokia’s stock has fallen 64% in that same time period.

Nokia will hold its second quarter earnings report Thursday.


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