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AT&T's Nokia Lumia Drops LTE to $100

9:45 AM -- AT&T Inc. (NYSE: T) will launch Nokia Corp. (NYSE: NOK)'s first flagship smartphone in the U.S. for only $99.99 with a two-year contract on April 8.

The carrier confirmed the price tag and launch date for the Lumia 900 to CNET Monday. The trio of AT&T, Nokia and Microsoft Corp. (Nasdaq: MSFT) first announced the smartphone at 2012 International CES and promised that Nokia's first Long Term Evolution (LTE) phone with Windows 7 on board would be competitively priced. (See Nokia Counts on AT&T for a US Comeback .)

In the following video interview from CES, Nokia highlighted some of the ways a Windows experience is different on a smartphone, especially as it relates to social networking:



Nokia already has the lower-end Lumia 810 on T-Mobile US Inc. , but it has been counting on its flagship 900 to kick-start its revival in the U.S. Pricing the phone significantly below the market average of $200 or more for LTE smartphones is an important move in that direction.

The handset maker will still face challenges, not least attracting developers to Windows Phone and luring consumers away from Android and the iPhone. But aggressively pricing its first handset was perhaps the smartest thing it could do. (See Small Change for Windows Phone Apps .)

My guess is that most consumers will buy the device more for the low price than the LTE connectivity. But, either way, if the trio is successful in promoting it, the Lumia 900 could also help drive adoption of LTE smartphones in general, as right now most consumers aren't seeing the value in paying a premium for 4G. (See LTE's Uphill Climb.)

— Sarah Reedy, Senior Reporter, Light Reading Mobile

sarahthomas1011 12/5/2012 | 5:38:19 PM
re: AT&T's Nokia Lumia Drops LTE to $100

Nokia recently offered an $899 bundle for the Lumia 810 and accessories...it had me worried they didn't understand the U.S. market at all, but I think they redeemed themselves today.

krishanguru143 12/5/2012 | 5:38:18 PM
re: AT&T's Nokia Lumia Drops LTE to $100



Pricing it aggressively is one thing, but getting the users to buy it is another.  WP7 has yet to make much of a dent in terms of sales.  Even the MeeGo powered N9 beat it and Nokia tried everything it could NOT to get that phone in the hands of the consumers.  Even Bada has done better than WP7.




krishanguru143 12/5/2012 | 5:38:17 PM
re: AT&T's Nokia Lumia Drops LTE to $100



The fact is, it is not a high-end smartphone.  They know they cannot go for high-end pricing on it and priced it where it falls in the market; low-end to low midrange.

 



Nokia was selling well over 100 million Symbian powered handsets per year and saw year over year growth.  Elop called this a “burning platform” and the best analogy I have heard was that he jumped off the burning platform into a lifeboat with a hole in it.  How many WP7 handsets have they sold?  Sriously, the N9 has sold more on a per quarter basis than all WP7 handsets combined.  Just recently did WP7 beat Symbian sales in a few markets which is not saying much as Elop made sure that burning platform was going to go down in a hurry.  He killed their sales to push WP7 and the sales have yet to be there.  I wouldn’t call 3.1% of the sales in those markets as a winning device or platform.  Germany is the 3.1 and the strongest market Nokia has right now for WP7.  We can’t use 2011 data as the announcement was made, so shall we look to see what the market share Symbian had in Germany in 2010?  55% was the number, 3.1% is FAR from it and Nokia will never see that again.  They will be lucky to see double digits.







sarahthomas1011 12/5/2012 | 5:38:17 PM
re: AT&T's Nokia Lumia Drops LTE to $100

That's true, but this is it's first high-end smartphone in the U.S. I got to play with it at CES, and I think it's a really great handset. Not only does it have LTE, but I liked the feel and look of the phone - hardware and software wise. I think the three companies are really going to step up marketing, which combined with the pricing, should make it successful here.

joset01 12/5/2012 | 5:38:15 PM
re: AT&T's Nokia Lumia Drops LTE to $100

Yeah, nobody ever asks me if they should buy a Windows phone. Ever.

joset01 12/5/2012 | 5:38:14 PM
re: AT&T's Nokia Lumia Drops LTE to $100

What I tell everyone that asks should I buy xxx:


Think very carefully as how you use a phone. If at all possible, try before you buy.


 

krishanguru143 12/5/2012 | 5:38:14 PM
re: AT&T's Nokia Lumia Drops LTE to $100

If they did ask, what would you tell them?

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