Nokia: Microsoft deal hinged on very low-price Windows Phone
Nokia's recently installed CEO Stephen Elop told those at a Finnish press event that developing ultra-budget Windows Phone devices was a condition of the Microsoft deal. Before it would make the switch, Nokia had to be persuaded that it could reach a "very low price point" in short order. While he didn't give a benchmark price, he expected the drop to happen "very quickly."
The price drop would likely be vital for both sides of the deal. Nokia has most recently built its reputation on catering to the developing world, where phones like the C3 bring near-smartphone features at prices that often dip below $200 off-contract. Outside of promotional deals, WP7 devices have usually cost $200 only on a two-year plan and can cost several hundred dollars, ruling them out for all the most affluent areas.
Microsoft deliberately broke from its traditional laissez-faire strategy to hardware requirements with WP7 to guarantee a consistent experience that would compete with higher-end smartphones, primarily the iPhone but also Android. The company has talked about loosening its guidelines this year to include processors beyond Qualcomm's Snapdragon and resolutions lower than 480x800, either of which should lead to less expensive phones.
Prospects for the shift aren't certain. Google has stressed that it's focusing on cheap Android smartphones this year to reach poorer parts of the world. Apple has usually refused to cater to frugal buyers but is now thought to be developing a lower-cost iPhone that could start lower than $99 on-contract and no more than $300 off.
Source : Electronista
The price drop would likely be vital for both sides of the deal. Nokia has most recently built its reputation on catering to the developing world, where phones like the C3 bring near-smartphone features at prices that often dip below $200 off-contract. Outside of promotional deals, WP7 devices have usually cost $200 only on a two-year plan and can cost several hundred dollars, ruling them out for all the most affluent areas.
Microsoft deliberately broke from its traditional laissez-faire strategy to hardware requirements with WP7 to guarantee a consistent experience that would compete with higher-end smartphones, primarily the iPhone but also Android. The company has talked about loosening its guidelines this year to include processors beyond Qualcomm's Snapdragon and resolutions lower than 480x800, either of which should lead to less expensive phones.
Prospects for the shift aren't certain. Google has stressed that it's focusing on cheap Android smartphones this year to reach poorer parts of the world. Apple has usually refused to cater to frugal buyers but is now thought to be developing a lower-cost iPhone that could start lower than $99 on-contract and no more than $300 off.
Source : Electronista
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