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Wednesday, 09 November 2011 09:43

Nokia Lumia 800 too pricey for telcos

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SIM-free version to ship in 2012


Nokia’s new flagship Windows Phone 7.5 handset seems to be running into some trouble on the part of European carriers.

It appears the gorgeous Lumia 800 is a bit too pricey for Telefonica, which won’t carry the new phone, and neither will its subsidiaries. Telefonica exec Simon Lee-Smith told telecoms.com that the new phone is simply not competitive enough and Nokia’s premium devices are not hitting the right price point.

“All device manufacturers seem to think that a €400-plus device is the norm. Well, it isn’t. Customers and operators won’t pay that cost for a device which doesn’t differentiate sufficiently.”

Nokia hopes to sell the Lumia 800 for €420, but the figure does not include VAT, which ranges from 21 to 24 percent in major EU markets. However, competition in the €500 market is pretty tough, with a flood of high-end Android phones, some HTC Mango handsets and even the entry level iPhone 4 8GB. Basically Lee-Smith believes Nokia is just too expensive.

In related news, Pocketlint is reporting that Nokia is pushing back the introduction of SIM-free Lumias to early 2012. Exactly why Nokia chose to delay it is unclear, but it means some smaller markets, or users who dislike lengthy contracts won’t get the new phone for about three months.

nokialumia800

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