After Microsoft announced that its upcoming Windows Phone 8 won’t run on legacy smartphones, Nokia decided to cut the price of its flagship Lumia 900 to half. From $99.99, it is now available at $49.99 with a two-year contract.
Nokia’s Financial Struggles
As noted by Reuters, Nokia’s shares drop to 3 percent last Monday, after investors showed their concern with regards to Lumia 900’s price cut. For them, dropping the price of the said mobile phone to half is a “sign of desperation” for the Finnish handset maker, as it struggles to compete against Apple’s iPhone and Samsung’s Android devices.
Last month, Nokia’s handset took a major blow, following the announcement that users cannot upgrade their Lumia 900 to Windows Phone 8. On the other hand, Microsoft plans to roll out Windows Phone 7.8 to all legacy devices. This mobile operating system will bring some of Windows Phone 8’s features like the updated Start screen with customizable tile sizes.
Introducing the Windows Phone 8
During the Windows Phone Developer Summit last June, Microsoft unveiled its Windows Phone 8 and its notable features.
The mobile OS will feature multi-core CPUs and high-definition screen resolution. It will also borrow much of its codes from the Windows 8 OS, allowing developers to create apps that can run on mobile phones, tablets, and PCs.
Microsoft is also enhancing Windows Phone 8’s speech support. This would enable third-party developers to use the mobile OS’ speech recognition functionality to search, play, or pause mobile content.
Working Around Nokia’s Market Stability
Nokia has bet heavily on Windows Phone in switching from its Symbian mobile OS. It was once dominant in the smartphone market, but it failed to retain its market share after Apple’s iPhone and Google’s Android took over. In fact, its credit rating was labeled junk by all three major credit rating agencies.
In addition, the company also announced last month that it will be downsizing their work force and plans to ax 10,000 jobs by the end of 2013. This is the company’s way to cut cost and turn its financial stability around.
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