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Print 25 comment(s) - last by leviathan05.. on Nov 8 at 2:56 PM

Holy Cow! That's cheap!

Last month, Best Buy jumped the gun a bit with pricing for the new Nokia Lumia 920 Windows Phone 8 device. At the time, the electronics retailer listed pricing for the smartphone at $149 with a new two-year contract.
 
However, AT&T has just officially opened up the pre-order lines for the Lumia 920, and it's only charging $99 with a two-year contract. Its lowly Lumia 820 sibling will be available for $49 with a two-year contract. Pre-orders begin tomorrow.

 
Microsoft CEO Steve Ballmer has already stated he expects that Windows Phone 8 sales and market share would “ramp quickly”, and this bargain basement pricing may be just the ticket to get some traction in the competitive smartphone market.
 
So what do you guys think? Is $99 for a flagship phone enough to get you to switch from iOS or Android to Windows Phone 8?

Source: Neowin



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RE: holy cow
By lightfoot on 11/6/2012 12:29:26 PM , Rating: 3
quote:
They are absolutely losing money on every unit sold.

Not a chance. Not unless they also lose money on every iPhone sold. The iPhone is a far more expensive piece of hardware, so if you grant a Windows Phone or an Android Phone the same exact subsidy as an iPhone gets, they will end up being $100-$200 cheaper (which equates to $99 or free) after subsidy. The 16GB iPhone 5 is $649 before subsidy, or $199 after. That is a $450 subsidy.

With the same subsidy, the Nokia, at $99 would have a full retail price of $599.

There is absolutely NO chance that they are losing money on this phone.


RE: holy cow
By lightfoot on 11/6/2012 12:37:09 PM , Rating: 2
D'oh! I meant $549. Math fail.


RE: holy cow
By BZDTemp on 11/6/2012 3:18:04 PM , Rating: 2
I would not be so sure the 920 hardware is cheaper than the IPhone5 and in fact it could easily be the other way around.

As for somebody taking a loss on the 920. It could well be as both Microsoft and Nokia needs the platform to take hold so subsidizing some phones is simply a marketing expense.


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