Last year, Microsoft and Nokia joined forces in an attempt to reduce the losses, and eventually gain back their edge in the phone market, as high performance smartphones were stealing all the focus and revenue. Now, Nokia finally released Windows Phone products but oriented for customers living by the concept ‘Cheaper Is Better’.
Since today’s market is literally crawling with all sort of smartphones, carrying high end performances at breathtaking rates, Nokia and Microsoft have decided to implement a new strategy. Their targeted audience is the customers that tend to be interested more in cheaper smartphones but with certain quality attributes. The new Lumia phones from Nokia are aimed to do exactly that.
On Monday, Nokia presented the audience at Mobile World Congress its new strategy to boost sales and promote gadgets carrying Microsoft’s Windows Phone. Basically, it means drop the prices, make your smartphone so affordable users can’t say no. In the end, both Nokia and Microsoft are brands widely recognized by customers everywhere for their quality. However, in the smartphone business, both brands have lost their status, as Samsung, Apple, Google and the like stormed the market over the past two years.
The new phones from Nokia are mostly aimed for emerging markets at retail prices that are mind-boggling. For instance, the Lumia 610 can easily be branded as the cheapest Windows Phone ever to be released in the market. Starting second quarter, somewhere somebody will be able to acquire a Lumia 610 for only $254.
But, both for Nokia and Windows Phone the new cheaper is better policy can be detrimental. To begin with, at such a low price every user will start asking why is this gadget so cheap, what kind of features is he missing on by selecting the lowest bid and even when he reads about functionality and performance he might come to the conclusion that if it sounds too good to be true, it probably is.
But, Jo Harlow, executive vice president of smart devices for Nokia, explains that thanks to Microsoft’s decision to cut back on system requirements for Windows Phone, the company is now “able to cover a range of needs and price points”.