Nokia is looking to boost its flagging smartphone business with the launch of new handsets running Microsoft’s Windows Phone 7.5 Mango. The company recently launched its first handsets running the operating system the Lumia 710 and the flagship 800. But could the Nokia Lumia 800 be a failure as a carrier says it’s too expensive?
According to the European general manager of international carrier TelefÃ³nica, who are also the parent company of 02, the devices are “too expensive”. Simon Lee-Smith said to Telecoms.com that the devices were not “at the right price point”, and basically said if the company wants to shift the devices in any great number Nokia has to provide handsets that are more “cost-competitive”.
He continued by saying that Nokia was now starting to listen to its various carrier partners, and believed the company would start providing handsets next year that would be more competitively priced. He believes the problems with price have been related to handsets already available such as the N8 and N9, as well as the recently announced Lumia 800.
When the device was revealed at Nokia World, Nokia CEO Stephen Elop said the Lumia 800 would sell for â‚¬420 before subsidies or tax. Lee-Smith feels manufacturers can be unrealistic with what consumers and carriers will pay for a new handset. He said that companies think that a device costing â‚¬400 or more is normal, but customers won’t pay that sort of money for a handset that “doesn’t differentiate sufficiently”.
He feels that just improving the specifications of smartphones is not good enough, and many carriers won’t pay higher prices for devices that just have larger screens of higher spec cameras. What do you think does Nokia need to have cheaper smartphones?