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Nokia Windows Phone prices set low to attract customers, developers

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Nokia set its Windows Phone prices lower than usual to attract more customers and developers.

Nokia might have only just produced its first two Windows Phone devices, but it sounds like CEO Stephen Elop knows they won't do any good unless people buy them and developers write apps: he told investors at a Morgan Stanley conference yesterday that the Lumia 800 and 710 are priced lower than usual so they'll move "a good volume." Elop also said that Nokia's primary competitors are "other ecosystems," and that his first goal is to demonstrate high volume shipments at low prices to convince developers to get on board and boost consumer interest, and then follow up with premium devices at higher profit margins. Elop also said once again that Nokia would "aggressively" enter the US next year, and that "multiple" US carriers are on board. (Like, say, AT&T and T-Mobile.)

All in all, it sounds like Nokia's plan is to first become the primary vendor for Windows Phones by undercutting other WP manufacturers on price, then build the platform into a serious competitor to iOS and Android, and then finally start selling more expensive devices. Not a bad strategy to start — and it certainly explains why Nokia chose to rework the N9 into the Lumia 800 to start — but we'll see if the company can pull it off.