Rumours are circulating that Nokia Corp. is offering its Lumia 900 smartphones for a mere US 99.99 next month. The news is saying that AT&T will offer this handset on contract at a discounted price because Nokia and Windows need to penetrate the US market before Apple and Samsung strikes again.
Microsoft and Nokia have invested heavily in the creation of the Lumia 900 and the revamp of the Windows Platform. They plan to sell their handsets in the US through AT&T. AT&T have already realized that US consumers want more iPhones and they are focused on selling contracts for iPhones rather than Nokia phones. It will be quite difficult for Microsoft and Nokia to attract consumers. They intend to try by offering a great product at a low cost. They are assuming that some people will buy and the news about the Lumia 900’s greatness will spread by word of mouth.
With competition from the Samsung’s Galaxy S2 update and possibly the S3 not lurking far behind, it is not sure whether the news of the Lumia 900 spread so far and wide. Lumia 900 handsets will be sold and marketed heavily within the next 8 weeks and US consumers will decide whether they pass or fail the test. Nokia has a mission of capturing as much interest as possible in a short space of time, but will consumers hold their cash and wait instead for the a new Samsung or possibly an iPhone 5?
Nokia's annual report revealed that only 4% of sales came from North America in 2011, down from 5% in 2010. The success of this marketing initiative, not only determines Nokia’s future, but also the entire future of Windows emergence into the smartphone market. It highly likely that Nokia and Microsoft will not convince people to sell phone, or do a mobile phone trade in for the new Lumia 900. In this case they will have to focus on improving their sales in other countries in like China, or in emerging economies where Nokia has already established a good reputation.