Nokia to price its new Windows Phone Mango line below Android in an attempt to pick up market share

Nokia to price its new Windows Phone Mango line below Android in an attempt to pick up market share
Remember the late night ads for those discount electronics stores? They usually had a name indicating that the owner was lacking in mental ability which resulted in low prices. For example, "Crazy Eddie" offered top line electronics at low prices. Some of those retailers would say that "prices are so low that we won't be undersold". This is the same economic theory that Nokia's head of North American sales, Chris Weber (still not the former NBA star), says that his company will use to grab market share from Android.

Weber says that Nokia is on track to release its first Windows Phone Mango flavored handset later this year, most likely the Nokia Sea-Ray that has already leaked. The executive also confirmed that the majority of Nokia's Windows Phone Mango devices will launch in 2012.

During an interview, Weber outlined how Nokia will pull off "one of the greatest turnaround stories in history". Nokia will no longer sell handsets directly to consumers and will work with the carriers to sell subsidized models at "competitive prices". At the same time, Nokia will launch many different models covering different price points including one model that will be priced lower than the cheapest Android phone to quickly gain market share.

Even though Windows Phone 7 models score well in tests by consumers and have a low return rate, when you go to a carrier or retailer, it is the Apple iPhone and Android models that get the shelf space. Weber wants reps to wear a Nokia Windows Phone Mango unit on their belt and Microsoft is talking with Nokia about how the latter can help the Redmond firm promote Nokia phones in the 75 new Microsoft stores expected to be built over the next 3 years.

While some of the money that Nokia received from Microsoft in the Windows Phone deal goes for marketing, Weber says that the company must market like it never has before. Some analysts believe that Microsoft's mobile OS is just as good as Android or iOS, but the latter two firms do a much better job of marketing and Microsoft and Nokia need to let the public know what the difference is between Windows Phone Mango and other OS. Nokia also will move some important services to Sunnyvale in the middle of Silicon Valley where the big shot superstars in the industry are.

Nokia must aim for the enterprise users with the new handset line. Office 365, Microsoft's cloud based business product, will help Microsoft continue to take market share away from the fast floundering RIM. And with Microsoft apparently committed to a single platform OS in the future, for PC's, phones and tablets, Nokia could grab some business by gaining an important share of that single platform system and by helping influence Microsoft.

Pricing below Android is a simple strategy for Nokia, Spending more money to out-promote Android is also not that hard. Where Nokia is going to need all of the brain power it can muster is in designing hardware for the new Windows Phone Mango line that challenges Android and is superior to it. Remember, when the Motorola DROID started Androidmania, it was more than just Android 2.0 that captured everyone's attention. The DROID was a square slab of a phone that looked and felt like a tank. Most importantly, it really had a unique look at the time which grabbed those who were looking for the anti-iPhone and found it in the Motorola DROID. Now, Nokia is looking for the Anti-Android phone.

source: SFGate via BGR

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35 Comments

1. brant

Posts: 24; Member since: Aug 08, 2011

this could be a good thing cus verizion putting phones at 300 was ridiculous! Now they'll have to think will this work?

18. simplyj

Posts: 406; Member since: Dec 23, 2009

300 isn't too bad for a flagship, Android 2.3, 4G LTE phone. it's certainly better than paying 700 or more.

23. Forsaken77

Posts: 553; Member since: Jun 09, 2011

It's the high-end models that get phones in peoples' hands and get them talking, not the cheap low-end models. If Nokia can put out a Mango phone comparable to the Galaxy S 2... I think they'll have no problem. People are more-so buying the hardware, no so much the OS.

2. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

If I remember the local 'Crazy Eddie' experience, Eddie was selling the same thing that Sears was selling, only or a lower price. Nokia is not selling Android handsets by Moto, Sammy and company, just forva lower price. Apples to Oranges. Keep it up Nokia. Before long, the only revenue you will be receiving will come from patent licenses.

3. Thump3rDX17

Posts: 2160; Member since: May 10, 2010

the Droid's ad campaign brings me goosebumps to this day. it was dark, it was daring, it was just pure awesome. Nokia could pull a real nice as campaign out for their Windows Phones but nothing will cause a stir like the Droid campaign again.

4. DKMDROID

Posts: 103; Member since: Aug 09, 2011

It'l be quite hard for just nokia to grab market share from android when there is an army of droids around and if it comes with uninspiring specs then i dotn think the price would justify the amount you'd have to pay

11. captn3x

Posts: 46; Member since: Aug 08, 2011

There is an increasing number of people that I know that are getting frusterated with Android. The force closing, phone rebooting on there own, and hardware made by the lowest bidder. These things are turning some people away from android.

25. NMexpo unregistered

The exact reason why I ditched Android for WP7. Thank God I don't see any more messages that say "force close" anymore!

29. sonisoe

Posts: 440; Member since: May 06, 2009

am one of them after 3 android devices...all with all these bugs etc..

30. corps1089

Posts: 492; Member since: Jan 20, 2010

this was the same basic reason Windows Mobile caught a lot of flak, now it is Android and some people will start bad mouthing it. None of the OSes deserve that mush tongue lashing.... but I never liked Android that much and hate apple for the choices its customers make, and I still use WinMo [until I can get my hands on a high end HTC or Samsung WP7 phone].

32. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 2011

If you use Winmo i suggest you have a look at bada. That's a really good OS, and i think you'd llike it alot more than Android. There's no force closes with bada (unless you use up all the RAM, the phone asks you to close some apps to free memory).

5. jroc74

Posts: 6023; Member since: Dec 30, 2010

It can happen...but ppl that left Win Mo have to have a reason to go back for it to take any real market share. So far the other manufactures havent caused enough of a stir to raise marketshare...with that buttery smooth UI n all. Nokia is banking on doing better? Good luck. It can happen...but good luck. Difference between when the Droid came out and now is its over a year later and it was only 2-3 Android phones out then. ...Nokia is going up against more than just 2-3 phones.

6. Eingild

Posts: 203; Member since: Apr 19, 2011

I'm very positive towards the Wp7 handsets. The only reason they're not picking up market share is lack of advertisements. Here in my country, only few people know WP7. In fact most of them only care about Apple iPhone and Android devices, yet they can't even distinguish the differences between Android devices, etc. My point is that WP7 needs more publicity than what it has right now. They have to make their selves known and they have to make it as soon as possible. This Nokia deal is a make or break decision. If this turns out to be a success, all hell will loose upon Android and iOS and the competition between these three will make innovation among mobile phones fly as fast as a rocket. PS. You can also blame those retarded sales rep on carrier centers. They don't have any idea on how to use a WP7 device so they end up recommending Android devices or iOS which is not entirely wrong, but definitely a moronic way selling.

10. PeterIfromsweden

Posts: 1230; Member since: Aug 03, 2011

Hmm, i read that MS has spent 400 million $ on advertising WP7. And in the UK where i was recently on holiday, there was WP7 advertisements absolutley everywhere. I think that advertising is not a problem for WP7. Whati think though, is that most people who look at WP7, find it ugly. But most important the sellers never recomend WP7. My theory is that most of the sellers are freaks. And everyone knows that most freaks don't like Microsoft. They like linux. So they try to sell Android or Iphone instead (or hopefully bada : )). My personal opinion aswell is that the operators are boycotting WP7, because of MS bought Skype. The operators hate Skype and they don't want to loose their profits.

8. okiedokey unregistered

I think the basketball player you are talking about is Chris Webber, not Chris Weber. Anyway if Nokia is going through carriers instead of directly, I do not see how they can make any gains. Right now, free subsidized phones are a dime a dozen. You cannot get cheaper than that. What would be more noticable would be under $200 phones without a contract, or get a smartphone without a data plan. Furthermore, MS put a minimum hardware standard to make the user experience better. When you lower that, you might just end up with unhappy purchasers.

21. biscutbob

Posts: 82; Member since: Jul 08, 2011

O dude! if they could subsidize a data plan just like the basic lowest data plan for two years. They would sell more phones than anyone even if the phone did cost $200. people would love that.

9. Dj21o

Posts: 437; Member since: May 19, 2011

I really hope the phones that come out don't suck and wasted all of this time... Just sayin'.

12. Mobile-X-Pert

Posts: 565; Member since: Dec 20, 2010

I don't want cheap phones I want quality.

14. protozeloz

Posts: 5396; Member since: Sep 16, 2010

You buy the good phones then

16. Mobile-X-Pert

Posts: 565; Member since: Dec 20, 2010

I really hope Nokia puts out some excelent hardware like they always do, I'm interested in getting a Nokia WP7 phone. I just don't want the phones to lack features to make them cheap, I want Nokia to put out all their big guns.

19. pong unregistered

get mango then, becuase the tango one is for the lower end

13. JayRaj

Posts: 54; Member since: Oct 31, 2010

One of the best articles u guys have written till now. Full on info and totally neutral. Exemplary!! :)

15. protozeloz

Posts: 5396; Member since: Sep 16, 2010

I don't dig the Android having a better commercial campaign. If it's true that Droid commercials helped raise the Verizon Droid lineup of Android devices I think its not enough to be compared with MS campaign for windows phone

17. remixfa

Posts: 14605; Member since: Dec 19, 2008

low return rate? like 70% of any HD7s sold in my store have come back. Its not because of lack of quality its because of lack of apps and options. As far as the low pricepoint model... they are copying one of android's strengths.. a phone at every pricepoint. That's a smart move. But they better have some strong hardware in the high end models. Those 1ghz single core chips arent gonna cut it against the beastly androids they compete with. Most customers I have ask about processor speed and take it into consideration (even if they never do more that text and facebook..lol)

20. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

For Nokia to make low priced Windows Phone 7 devices is cool as long as the phones work well. Microsoft cannot allow Nokia to make cheap Windows phones 7 smart phones that work poorly because it would make people think that Winows phone 7 devices stink and are not worth the money.Microsoft would gain a bad reputation THAT WOULD TAKE YEARS TO OVERCOME. The cheaper Windows phone 7 devices must at least have the Mango update and work well then Nokia Phones will be a Winner

26. remixfa

Posts: 14605; Member since: Dec 19, 2008

i would hope that the cheap phones stick with the snapdragon 1ghz. Thats getting to be towards the bottom of the line now. If they go much lower than that, then its just going to shoot themselves in the foot. They launch a sketchy laggy windows phone and its going to remind everyone of the old windows phones and turn off a lot of customers. They need that buttery smoothness to keep people from remembering windows mobile 5xx and 6xx

22. biscutbob

Posts: 82; Member since: Jul 08, 2011

The nokia phones look badass. I havent used one yet buy with an impressive spec sheet i would be more than willing to try it.

24. humboldt1 unregistered

None of Sprints tech support could help me with my HTC ARRIVE 2weeks after its release when I called in. They told me they didn't have one in office to look at,use and they would have to go online and call me back with the answers. This was their first wp7 and they care that little,sad because I really enjoy the phone and want another WP7 like the rumored HTC eternity(I think) Now as for store reps,the lady selling phones at the local Target told me wp7 was being canceled and MS was pulling the plug on it,I should look at iPhone or if not Android......I pulled out my HTC ARRIVE and told her she's an idiot.

27. WTFPHONEARENA unregistered

The Droid started Androidmaina? Sorry, but I bought my G1 at launch.

28. lubbalots unregistered

I don't understanding how carrier reps not know how to use wp7. It doesn't take tech brains to use this os!

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