The price of Nokia’s flagship Lumia 900 Windows phone has been cut in half in the critical U.S. market, a little more than three months after the launch of the smartphone at AT&T Inc.
The Lumia 900 hit the market at AT&T stores in April and the device had been priced at $99 with a two-year agreement, but a new price of $49.99 was introduced early Sunday.
The price cut comes as Nokia’s smartphone performance is under significant scrutiny given the financial woes the Finnish company has encountered because of market-share losses and pressure on margins.
Nokia Chief Executive Stephen Elop last month announced further downsizing moves, including 10,000 job reductions and a streamlining of research and development efforts.
“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. It “allows a broader consumer base to buy this flagship device at a more accessible price.”
Nokia’s Lumia phones took a hit a few weeks ago when it became apparent that current versions of the phone wouldn’t be eligible for an upgrade to the new Windows 8 software later this year. Nokia has said the Lumia phones will, however, get significant upgrades even if Windows 8 upgrades won’t be available.
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