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Nokia slashes price of existing Lumias

Nokia has been going through a financial nightmare lately, and the only option out was launching a new Windows Phone 8 device. Nokia was expected to announce its new Windows Phone 8 based devices yesterday, and things have gone according to the plan. The Finnish mobile manufacturer announced the new Windows 8 Lumia 920 and the Lumia 820 smartphones.

The announcement in New York City included a brief appearance by Microsoft CEO Steve Ballmer, who called the launches “an important milestone” in Microsoft’s 18-month partnership with Nokia. ”Windows Phone is unlike any other on the market,” he said. “You really see it in the 820 and 920.” Nokia’s Lumia 920 smartphone.

Both, Nokia Lumia 920 and Lumia 820 run on Windows Phone 8. The new devices are great. Soon after the announcement of the new Lumia devices, the Finnish mobile manufacturer has cut the price of its mid-range Lumia 800 Windows Phone by around 15 percent and made smaller reductions on other Windows models.

“Our pricing has been business as usual, reflecting typical product lifecycle changes,” a Nokia spokesman commented on the price cuts.

The aggressive pricing strategy on the old devices should help the company with slow sales of Windows Phone 7.5 devices, whose sales have taken a nose dive in the past few months. The drop in sales is due to Microsoft’s announcement that Windows Phone 7.5 devices won’t be upgraded to the next-gen mobile operating system from Microsoft, the Windows Phone 8. The reason is because with Windows Phone 8, Microsoft will be moving on from Windows CE architecture to Windows NT kernel and will have many of its components taken from Windows 8, thus allowing applications to be easily ported between the two platforms.

Microsoft later did say that they would be upgrading all the current Windows Phone devices running Windows Phone 7.5 to Windows Phone 7.8, in which the software giant will back port a lot of components, including the new lock screen, to the older devices. As of now, Windows Phone still has less than 5% market share, but with the launch of Windows Phone 8, Microsoft hopes will rival Apple’s iOS and Google’s Android to become a third major mobile platform.

Even though the current Windows Phone 7.5 devices will be upgraded to Windows Phone 7.8, the fact still remains that these devices will not get Windows Phone 8 for sure, so selling the old stock might be a problem as most of the smartphone buyers would research online before buying any new device.

Investors were not happy with the company’s new devices and that reflected in Nokia’s stock which plunged by 16% in the hours after the announcement. The company did not give out any price or roll-out dates on new Windows Phone 8 based Lumia devices which have rounded edges and colorful body like their predecessors. Nokia will be facing a tough competition from Samsung too, which incidentally unveiled its Windows Phone 8 device recently. Other manufacturers like Motorola and HTC are also anticipated to launch their own WP 8 device. Nokia’s bad times may not end so fast. To keep a track of things going on within the Finnish mobile major, the company has logged more than 3 billion euros in operating losses in the last 18 months.