UK Carriers "Hate On" Nokia Lumia 900, Don't Even Try to Promote it
April 17, 2012 4:53 PM
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(Source: South Africa World Cup Blog)
"No one comes into the store and asks for a Windows phone." -- Euro executive
It's been a wild ride for Nokia Oyj.'s (
) first Windows Phone super-phone, the Lumia 900 LTE. The last week has
brought strong sales
, and even
a bit of respect
from the American market.
I. Sampling the Hatorade
reports that the increasing Nokia Lumia Windows Phone buzz is met with icy disdain across the pond in the UK. One of Europe's top markets, UK carriers appear to be giving up on Nokia's Lumia, after hardly giving it a chance to shine.
An executive at a European telecom who had been selling the
Lumia 710 and 800
, "No one comes into the store and asks for a Windows phone. Nokia have given themselves a double challenge: to restore their credibility in terms of making hardware smartphones and succeed with the Microsoft Windows operating system, which lags in the market."
The executive is quoted as praising Windows Phone for its "tons of cool" features, but then throws the OS under the bus, stating, "If the Lumia with the same hardware came with Android in it and not Windows, it would be much easier to sell."
The curious thing with the European carriers is that they claim to be frustrated with Google Inc.'s (
) Android legion and with the pricey iPhone from Apple, Inc. (
) -- a device that may never turn a profit for carriers. But when it comes to selling the Lumia's
reports that the carriers are
making hardly any effort
. Nokia's Windows Phones are tucked away in unseen corners and clerks peddle Apple iPhones and Samsung Electronics Comp., Ltd. (
) Galaxy phones on smartphone shoppers.
It's a tale of two continents. In Europe, carriers are still eagerly ponying up the 600 to 700 euros (~$800 to $900 USD) to sell iPhones to customers, despite the fact that they
may never turn a profit on the device
. Even Samsung phones are fetching an impressive 300 to 500 euros (~$400 and $650 USD) from the EU carriers.
Meanwhile, U.S. carriers appear to be adopting a different philosophy. Encouraged by discounted handsets from Nokia and Microsoft Corp. (
), the carriers are finally giving the platform a chance and pitching it to customers. AT&T reports strong sales of the Lumia 900 LTE, which is prominently featured in nearly every U.S. store. T-Mobile USA -- a subsidiary of Deutsche Telekom AG (
) reported that the Lumia 710, an entry-level Nokia Windows Phone, as
among its most popular handsets
II. Some Say Lower the Price; Others Say It's Hopeless
Richard Windsor, global technology specialist at investment bank Nomura predicted Nokia Lumia phones to take in 300 Euros on average. Their actual haul is about 220 euros on average. Yet, carriers seem to have no interest in these bargain devices in Europe and aren't even trying to sell them to customers.
The carriers seem to contradict each other. One executive is quoted as saying, "If they could lower the price we think they could sell more. It might be worth making it a bit of a loss leader to get it out of the door. It's not rocket science."
EU carriers are giving Nokia contradictory advice about how to bump sales, while reportedly putting little effort into trying to push the Lumia line. [Image Source: Nokia]
Another suggests that price is not enough. They state, "We can open our stores to them and train our staff to sell the phones, but that's it. Ultimately, Nokia and Windows are challengers and they either need to come to market with a really disruptive, innovative product or a huge marketing budget to create client demand. So far they have done neither."
The perplexing situation has to be particular frustrating for Nokia who is seeing accelerating U.S. sales, but has been largely scorned in its home continent. If there's one thing illustrated by all the European criticism surrounding the Lumias, it's that while EU carriers may complain about Apple and Samsung's profit-seeking, they really don't mind all that much or have much desire to seek out and promote alternative options.
That's bad news for Nokia and anybody who isn't named
Samsung or Apple
This article is over a month old, voting and posting comments is disabled
RE: Jason Like Windows Phone
4/17/2012 10:05:20 PM
It's competitive now. It's a respectable Phone OS now.
Palm is one of those companies which died because the company that adopted them didn't know what to do with their property.
The trick with technology is to be patient. Don't buy first generation anything. Give it time to mature and often become cheaper and more efficient.
MS's new phones are decent. I have a few complaints, but I hear my roommate complain about his iPhone. I had a coworker who bought an Android the month it came out only to sell it a few months later because it was junk (he paid $1,000 for it... which was nuts, imo).
RE: Jason Like Windows Phone
4/18/2012 11:43:03 AM
Okay please, what Android phone costs $1,000 first off? If you're going to make wild claims that a $1k Android phone is "junk", I think you need to be more honest and quantify that. I've never heard of ANY phone costing that much anyway, so whatever. The Samsung Note is like $600 tops! If there is more expensive Android phone out there, I'm not aware of it. Even my Galaxy S II when it came out was way less than $1k.
RE: Jason Like Windows Phone
4/18/2012 2:21:48 PM
That was in early 2009 that he bought that phone. It wasn't subsidized because he's a foreigner and he had to pay the full price up front. Early adopters often have to pay excessive prices to be the first. The first Samsung Tabs I remember going for around $800 (in Korea, which was well before they entered the US).
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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