Nokia may be asked to lower Lumia costs in UK

Nokia may have been asked to cut prices on the Lumia 800 to shore up poor performance in stores. Apparent leaks on Wednesday from a pair of sources to the Financial Times asserted that carriers wanted the suggested cost to run lower so they could put the flagship Windows Phone on lower monthly tariffs. Nokia had originally asked for the phone to be sold on £25 ($39) plans, but carriers wanted it on the £20 ($31) closer to budget plans.

Descriptions of the negotiations suggested the price drop might be a condition for picking up the Lumia 710, the less expensive of the two phones brought to Europe so far. Nokia wouldn't have trouble offering the 710 at the lower rate, but it might object to having its more advanced phone discounted as well.

Carriers may be taking advantage of a perceived "weaker" position for Nokia to angle for more favorable terms, one contact said.

Nokia hasn't commented on the claims. The Finnish developer hasn't given out the performance of its Windows Phones since they went on the market in the fall, and it's not expected to provide more detail until its official fiscal results. It had never set high initial goals for its early batch of devices on Microsoft's OS, which were more to have an alternative to its aging Symbian platform before the end of the year.

Slow performance would still point to Nokia having yet to completely turn around its smartphone business. Having only sold Windows Phones since November may play a part, but the OS' overall slow adoption and price issues may have played a part. Some of its hopes are pinned on a US rebirth through the Lumia 900 on AT&T.

By Electronista Staff

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Nokia, AT&T, mobile phones, Windows Phone, Lumia