Nokia Is Attacking the U.S. Market with an Inexpensive Smartphone for $99

The new smartphone from Nokia, Lumia 900, won’t have a high price in the U.S. Its retail price will be around $99.99 and AT&T will sell the phone starting with April 8. Lumia 900 can rival with high-end models from Samsung and Apple.

Unfortunately, the low price could turn it into a product that cannot be included in the big league. This is the irony of Nokia’s situation on the smartphone market in the U.S. Lumia 900 has such a low price that it could be considered “cheap”, even if they want to attract customers who appreciate the quality and value of a smartphone.

Lumia 900 has the most attractive features. It has a 4.3-inch screen and uses AT & T 4G network. It has a 1.4 GHz processor. Also the video / photo technology is very advanced. The battery has autonomy of seven hours (talk time).

Lumia 900 price falls in the category applied by Research in Motion (BlackBerry). But BlackBerry is a smartphone out of users’ interest. Lumia 900 has the same price as Motorola ATRIX (another manufacturer of smartphones who has lost ground in recent years).

The majority of smartphones purchased from AT & T are sold at prices from $199.99 up. Here we include iPhone ($399.99) and Samsung Galaxy Note (retail price $299.99). Samsung will most likely surpass Nokia in global sales of mobiles, relying primarily on the market share in the smartphone segment. Nokia was the leader for many years.

Lumia 900’s launch can be viewed as an exercise in branding. Luxury brands such as BMW, Louis Vitton, Gucci and Gillette have premium prices. Consumers correlate high quality products with high prices. Of course sometimes it is not the case, but we are not dealing with an exception to the rule.

Lumia 900 can be positioned in the smartphone area that will compete with “mediocre, middle-class” mobiles. So, Nokia is not competing in the “big league” of smartphone manufacturers with Lumia 900. Nokia will enter the U.S. market in the cheap mobile segment. This way, it is risking promoting the image of a cheap brand.

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