Microsoft, Nokia downplay another Windows Phone failure

When Microsoft and Nokia partnered to launch the Lumia 900
just three months ago, it was supposed to herald a major
turning point in both companies efforts to gain ground in
a smartphone field dominated by iPhones and Androids. But
AT&T has slashed the price in half to just $50, raising
new questions about whether Microsoft’s Windows Phone
platform will ever become a legitimate player.

The phone was supposed to help make Nokia relevant again
in the U.S. after the former industry leader virtually
disappeared for years as Apple and others took over. AT&T
launched the Lumia 900 with a massive marketing campaign
that even outpaced the initial iPhone efforts. And its
initial $99 price tag drew a lot of attention.

While it’s another black eye for Microsoft, it’s much
worse for Nokia. While a Nokia spokesman insists the cuts
were “an industry standard practice” in comments to
The New York
Times, “It seems to be a strategy to clear
inventory that’s not selling well,” independent mobile
phone analyst Chetan Sharma told the Times.

Microsoft plans another reboot of its phone efforts this
fall with the launch of Windows 8. Last month the company
announced the Lumia 900 wouldn’t be eligible for upgrade
to the new operating system.

There is one silver lining for consumers looking to get an
inexpensive smartphone. The Lumia 900 has drawn generally
favorable reviews and Amazon is now offering it for a
single penny with a qualifying service plan.