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Nokia Slashes Lumia 900 Price in Half

Nokia has but cut the price of their Lumia 900 smartphone in half in the US with a two-year contract in a bid to increase anemic sales of their flagship smartphone.

Just three short months after releasing their flagship smartphone, Nokia has cut the price of the Lumia 900 smartphone in half. The cut from $99 to $49.99 (with a two-year contract) is seen by many as an attempt by Nokia to win market share back from Samsung and Apple. The company’s ambitions for the Lumia 900, sold through AT&T, were severely dented by a major software bug that caused many of the phones in the US to lose their data connection.

Much of the consumer desire for the Lumia 900 was also damaged by news from Nokia that the device would be unable to run the newest version of Microsoft’s Windows operating system. A Nokia spokesperson denied that the price cut was an act of desperation, saying that the price cut was “not unusual” at this point in a smartphone’s life, calling it part of the company’s “normal strategy” for handsets. There has been no word as to whether or not the price cuts would be extended outside of the US, however.

Until the beginning of this year, Nokia had been the worldwide leader in handset sales; Samsung has since overtaken Nokia as the world leader in handset sales. According to Strategy Analytics, a market research firm, Samsung sold a whopping 25% of all phones in the first quarter of 2012, with Nokia in second place at 22.5%, dropping by 24% in the previous year.

In attempting to staunch the corporate bleeding, Nokia announced last month that it would be cutting another 10,000 jobs, bringing the total number of jobs lost at the company to 40,000. Another measure they will be taking is to phase out the Symbian operating systems on their phones in favor of Microsoft’s software.

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