Nokia faced staggering losses in the first two quarters this year. Only a week ago, the shares slipped, marking a fall of 60% in the last three months. It is going to reveal the exact losses in the second quarter on 19 July. It is no secret that Nokia has sunk deeper into the crippling red zone. A Reuters poll declared that the Q2 loss can amount up to 236 million Euros, only from the Smartphone end of the business, dealing a heavy gut punch into Nokia’s already sore finances. After downsizing the company by cutting over 10,000 jobs, Nokia has taken yet another initiative to cut down its losses.
Although Nokia can only pin its hopes on its Windows Smartphone, Nokia Lumia 900, not much seems to be going in its favor. For one, Nokia Lumia 900 will not be compatible with the upcoming Windows OS, rendering them virtually useless to those users who want a piece of Windows 8. Moreover, with a number of high-end Smartphones in the pipelines for both Samsung and Apple, it takes no detective to deduce that Nokia will not stand much of a chance. According to International Data Corp’s report last month, Google Android Smartphones will make up 61 per cent of the global market this year, while Apple iPhone could comprise of as much as 20 per cent. It seems Nokia has made a similar deduction because the company has decided to cut down the price of its renowned Smartphone by half to try and claw its way back in the US market. Latest Reuters report says Nokia has cut the Nokia Lumia 900 price from 99USD to 49.99USD in the US market. The decision has been taken after prolonged discussions between Nokia and AT&T, which retails Lumia 900 in US exclusively.
Nokia spokesperson Keith Nowak has reasoned that “the price cut is part of our ongoing lifecycle management, which is jointly done between Nokia and carrier customers”. He also mentioned that price cuts on Smartphones is not a radical move as Samsung has slashed the Galaxy S II (that was launched a few months before the launch of Lumia 900) price tag as well.
The Nokia Lumia 900 Smartphone was first unveiled in London at the Nokia World 2012. It created a ripple by becoming one of the first Smartphones to flaunt an integration of Microsoft’s software and Nokia’s hardware. Nothing could go wrong with this beloved brainchild of two heavyweights of their respective fields. Yet only a few months after its launch, the fiscal problems of the company have considerably chipped its reputation. It seems Nokia’s very late move to jump on the high-end Smartphone bandwagon, coupled with its regular losses in the less expensive mobile market had set it years behind companies like Samsung or Apple or HTC even. Anyways but for the customers, it is a very good news as they can get their hands on Nokia Lumia 900 for half price. It will be interesting to see if this move can help Nokia’s cause or goes against them.