Nokia Sets Rollout for New Lumia Phones - Wall Street Journal [awgadget.blogspot.com]
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By SVEN GRUNDBERG and NICLAS ROLANDER
STOCKHOLMâ€"Nokia Corp. broke its long silence on European marketing plans for new Lumia smartphones one day before rival Apple Inc. plans to put the new iPhone in nearly two dozen additional countries.
The Finnish handset maker said the new Lumia 820 and 920 devicesâ€"unveiled earlier this monthâ€"go on sale in key European markets in November. Nokia didn't reveal its plans for the crucial U.S. market, where it hopes to regain footing after losing considerable ground to Apple and other competitors.
Nokia's decision to unveil pieces of the marketing program could accelerate what has thus far been a colorful and, at times, disappointing launch.
The new Nokia Lumia 920 will go on sale in November.
When the company first showed off its new Windows 8 phone in New York, investors and industry observers knocked Nokia executives for not giving enough detail, such as when sales would start and how much the Lumia devices would cost. Then, independent blogs called the company out for releasing misleading marketing materials intended to show off the functionality of the phone.
The forthcoming Lumias are slated to run on Microsoft Corp.'s new Windows Phone 8 operating system, and will hit shelves in Germany and Italy in mid-November and will be on sale in Sweden, Denmark and Russia during the final three months of the year.
The 920 will be available in Italy for €599 ($ 771) and the lower-end 820 will cost €499. In Germany, the 920 will retail at €649 including taxes and excluding subsidies.
Nokia will work with a wide variety of carriers in Europe in relation to distribution.
Nokia's new phones come at a critical time for the company, and a busy time for the smartphone industry. Market share plummeted after Nokia ditched its old in-house operating system in 2011 for Microsoft's new Windows Phone software, and a spate of new high-end entries from Apple Inc., HTC Corp., Samsung Electronics Co. Ltd. and Motorola are due ahead of holiday sales.
Apple's iPhone 5 will start to sell in another 22 countries on Friday and the company earlier this week said initial supplies of its new iPhone 5 have sold out, achieving a first-weekend sales record for the company. Apple sold five million new iPhone's during the first three days in stores.
Samsung this year dethroned Nokia as the world's largest mobile-phone maker and recently said sales of its Galaxy S III flagship phone have now surpassed 20 million, the fastest start for any of its devices. The company introduced the device in May, and it is on sale at all four major U.S. carriers.
As for Nokia's new phones, pricing is "exactly where one would expect it to be," industry analyst Ben Wood at research firm CSS Insight said. "Given that Italian operators don't have a history of subsidizing devices, prices in Italy are usually relevant to look at."
Mr. Wood said that Nokia's new devices are expensive to make due to a slate of new technology, including large screens, wireless charging and the inclusion of a chip to allow wireless transfer of data over distances of a few centimeters. He said the company needs to work hard to keep the new Lumias as a relevant player without resorting to price cuts.
"I'm sure that Nokia is pricing its new Lumias as aggressively as it can, but at the same time it needs to maintain pricing integrity," he said.
The current Lumia lineup has been a relative disappointment, and Nokia and its distribution partners were forced to cut the price only months after the launch. Amazon.com, a distributor of the phones in the U.S., has been offering deals through which buyers can get a Lumia for $ 20 if they sign up for a phone contract.
Earlier Thursday, operators in Australia were first to announce that they will sell the new Lumias. Australian pricing will come in about a month.
Nokia said it expects more operator and retailer announcements in the coming weeks.
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