Nokia Adopts Price Drop Strategy To Spur Sales of Older Lumia Phones

Nokia which is currently facing a financial crisis is reportedly going ahead with price cutting measures for its older Windows phones. These rumors came after their latest range of Nokia Lumia phones failed to make any positive impact in the market. The company is expected to reduce the price of its mid-range Nokia Lumia 800 by almost 15 percent. These reports have been leaked on Reuters. Their details are yet not available.

With the latest Nokia Lumia phones already failing to make a strong buzz, the company shares has already started to fall. Nokia’s expectations with these Windows phone were quite high and analysts even called it as Nokia’s final attempt to gain the market share which is now dominated by manufacturers like Apple, Samsung and Google. Though Nokia has not officially confirmed the price cuts, but some company sources stated that there is nothing unusual about price cuts and it is just a routine pricing strategy.

If these rumors turn out to be true, then Nokia’s lower-end and mid-end smartphone revenues will get affected by the price cut. As per the analysts, the company revenues will be affected especially in the months of September and October when the newer models released in to the market are expected to show up results. As per unofficial sources, the company is planning to release Nokia 920 model which is expected to be a higher-end smartphone that will be placed as a direct competitor for Apple’s iPhone device.

Kai Korschelt, Deutsche Bank analyst stated in a research note, “We believe Nokia will struggle to regain sufficient market share with Windows 8 devices to offset increasing pressure on its Mobile Phone business from low cost Android devices in 2013.”

Nokia seems to be heading towards its toughest days and it is almost certain that they have to do something drastic to make a comeback in the smartphone segment.

Specifications of Nokia Lumia 900