NOKIA has cut their U.S. price of its flagship smartphone by 50 percent, barely three months after its launch.
This is particularly an effort to stanch losses in market share to rivals such as Apple Inc and Samsung Electronics Co. or Is it a sign of trouble for the Nokia?
“Lumia 900 Windows phone price has been reduced to $49.99 from $99 with a 2 year contract,” said by Keith Nowak, Nokia spokesman on Sunday.
Nokia’s Lumia 900 is sold at AT&T Inc stores. Nowak also said the price cut “is part of our ongoing lifecycle management, which is jointly done between Nokia and carrier customers and and it allows a broader consumer base to buy this flagship device at a more accessible price.”
Nokia Lumia’s contract price for its $100 price tag was aggressive with the hope that it would beat it’s competitors,such as the iPhone 4S , which are available anywhere between $200 and $400 with a contract. Despite this expectations for its latest Lumia phone, it continues to struggle against Apple and Samsung.
Moreover, Last month, Nokia announced that it would cut 10,000 jobs worldwide by 2013 as an effort to restructure its company. The result of its restructuring will include closures of its facilities in Canada, Finland, and Germany, streamlining its operations.
As par International Data Corp, Smartphones using Google Inc’s Android system are expected to comprise 61 percent of the global market in 2012, while Apple’s iPhone could capture more than 20 percent.
Nokia is expected to report second-quarter results on July 19. Analysts polled by Reuters last week expect a loss in the handset business of 236 million euros ($289 million), up from 127 million euros ($156 million) in the first quarter.
Shares of Nokia closed Friday at 1.51 euros, after earlier in the week falling to their lowest since the mid-1990s. They have slid nearly 95 percent since November 2007.