Advertising costs forcing Nokia to sell the Lumia 900 at a loss?

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Back in the day, Nokia was one of the best smartphone manufacturers in the market with the success of the company’s E-Series line of handsets. However, things started to go downhill for the Finnish company when other manufacturers such as Apple, Samsung, HTC and the like entered the smartphone competition and began releasing their products to the market. This effectively relegated Nokia to the back seat of things while the manufacturers above had all the fun and profits in the smartphone market.

Buy the Nokia Lumia 900 starting at one penny.

It was only a strategic partnership with software giant Microsoft that will give Nokia a second lease at life. After all the contracts have been signed, the company started manufacturing handsets for the Windows Phone platform and this gave it the chance to reclaim its lost glory and become relevant again in the smartphone competition.

In US shores, the company released the Nokia Lumia 900 4G, its current flagship device, via AT&T and the handset has received exceptional reviews since hitting the shelves of the carrier. In addition to that, some of our smartphone-crazed brethren, those who are fanboys of the platform, consider the handset as the best choice to get a feel of the Windows Phone experience especially if you are thinking of jumping ship to the platform.

On the outside, the Nokia Lumia 900 4G may be the successful device that it is. However, there are forces in the background that make use think in the contrary. The handset has always been at the second spot at the bestsellers list of AT&T since it was released a couple of months ago but has recently suffered a setback when the HTC One X 4G took the second spot last June and the Nokia Lumia 900 4G slipped down one notch to number 3.

In addition to that, there are certain reports that Nokia is actually forced to sell the handset at a loss due to exorbitant advertising costs it has to contend with. With the handset now being offered for just $49.99 with a new two-year service agreement with AT&T and starting at just one penny at select retailers, it is said that Nokia spends roughly $450 dollars to market the handset and get a buyer to actually purchase a unit of the Nokia Lumia 900 4G. Not only that, despite the perceived success of the handset in US shores, Nokia was only able to sell 330,000 units of the handset in other parts of the world if the figures from ComScore and Nielsen are as accurate as they can get.

It is said that getting a Windows Phone handset involves a big leap of faith because consumers do not know what to really expect as opposed to getting an iPhone or an Android handset where a buyer already knows what he is going to get. Although the aggressive marketing strategy of Nokia has worked to get a lot of people talking about the handset, actual sales of the handset are still weak despite the peak in interest for the Nokia Lumia 900 4G.

At this point in time, we are bound to ask if the amount of money Nokia is spending to market the Nokia Lumia 900 4G is money well spent for that matter.  Buy the Nokia Lumia 900 starting at one penny.

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WP Socializer Aakash Web