US carrier AT&T slashes cost of Nokia Lumia 900 to $49.99

By Lee Kaelin on July 16, 2012, 11:00 AM

Nokia and US mobile carrier AT&T have slashed in half the upfront purchase prices on contract for Nokia's flagship Lumia 900 smartphone. The move follows Microsoft's recent announcement that the handset would not be able to receive the upcoming Windows Phone 8 operating system upgrade later this year.

Microsoft confirmed last month that existing Windows Phone handsets, including the entire Nokia Lumia range would not be suitable to run the new mobile OS. Instead, the Redmond-based software giant plans to offer the current generation of Windows Phone devices a halfway-upgrade to Windows Phone 7.8 so owners can take advantage of some of the new features provided by the next generation mobile OS.

The discount comes barely three months after the handset's US launch and means subscribers can get a new Lumia 900 on contract for $49.99, a saving of $50 on the previous retail price. It's unclear if this discount will be passed on to other countries where the flagship smartphone is sold.

Finnish phone maker Nokia played down the notion that the price drop was in response to Microsoft's announcement however. "This move is a normal strategy that is put in place during the lifecycle of most phones," Nokia spokesman Doug Dawson said in a statement to the Wall Street Journal. "It allows a broader consumer base to buy this flagship device at a more accessible price."

Analysts for Liberum Capital speaking with the Telegraph pointed out that Nokia's sales and earnings were on a slippery slope with its already revised Q3 earnings facing further threat. "Windows Phone 8 is likely to depress Nokia’s third-quarter smartphone sales further, while also putting pressure on prices and margins. The only hope for the company is that sales can revive subsequently from the fourth quarter [of this year]."

Nokia is expected to post its second quarter earnings on July 19, with industry analysts predicting the company will report a loss in the handset business of around €236m ($288m) for the three-month period.




User Comments: 11

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Guest said:

What an ugly looking phone.

psycros psycros said:

The phone's not too bad..the OS is the real eyesore.

Guest said:

Anything M$oft touches sucked....

Guest said:

There is nothing wrong with the phone and the OS is the icing on the cake. I'm really tired how it has become "cool" to hate Microsoft. Not because I'm a fan boy, but because it reminds me how ignorant people are of the facts during an election year.

Staff
Julio Franco Julio Franco, TechSpot Editor, said:

I think both OS and phone look great. They are having a hard time attracting developers however.

[link]

MilwaukeeMike said:

There is nothing wrong with the phone and the OS is the icing on the cake. I'm really tired how it has become "cool" to hate Microsoft. Not because I'm a fan boy, but because it reminds me how ignorant people are of the facts during an election year.

Lol, awesome comment, and so true. Please create an account 'Guest'

Hating MS has been cool since they bundled IE with windows and pissed off netscape.

And 'slashing' the price? It was $50. Nice choice of words, however exaggerated.

Guest said:

Then put your money where your mouth is and go buy one.

Guest said:

@guest, I already own one.

hahahanoobs hahahanoobs said:

I've had the iPhone 4, and I currently have a Galaxy S. Let's just say, if I get tired of Android OS, WP8 is next on my list.

Guest said:

Lumia 900 = Windows Phone 7.8 = Dead OS, and old stale app store.

All that at the VERY START of your AT&T 2 year contract. Do we feel screwed or do we feel SCREWED!!!

Yep, I should soon dump my 2 year contract, and I will send the Lumia 900 back to ATT.

They won't get rid of those things, even if they gave them away for paper weight. $50... bunch of thieves.

yRaz yRaz said:

@guest, I guess you ignore facts too? Not being able to upgrade the os is a much bigger problem on android and people still buy those phones. But as the guest before you said, it has become cool to hate Microsoft. While it is disappointing, you can buy an android phone that will never be able to upgrade the os. Microsoft is doing more than most carriers and manufacturers about the os problem that is so prevalent among android phones. No one cares about facts anymore.

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