Nokia (NOK) Halves Lumia 900 Price in U.S.; Prepping for Windows Phone 8?

July 16, 2012 7:07 AM EDT
Either Nokia (NYSE: NOK) is girding up for the next wave of Windows Phone devices, or its current flagship model is just simply not getting enough attention from consumers. Investors are hoping it's the former rather than latter.

According to reports out Monday, Nokia is slashing the price of its Lumia 900 smartphone in half, from $99 with a two-year contract, down to just $49.99. The price cuts were first seen on AT&T's (NYSE: T) website Sunday.

Nokia's Lumia 900 has been on sale in the U.S. just three-months leading up to this point.

Whether or not Nokia will bear the sole cost of the $50 price cut is unclear. Wireless carriers generally agree to heavy subsidies in order to carry some of the latest and greatest devices. The carriers then hope to regain the outlay via monthly fees.

The Lumia is available only on AT&T in the U.S. and on T-Mobile's network in other markets. The device will be debuting on Verizon's (NYSE: VZ) network within weeks, according to recent company comments.

Cuts might be coming following news a few weeks ago that current Windows Phone devices will not be upgradable to Windows Phone 8, which possibly put a massive wet blanket on sales.

Shares of Nokia last closed down 2.1 percent, a 17-year low. Monday, the stock is indicated for another 2.1 percent drop.

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