The price of Nokia Corp.'s NOK -2.13% flagship Lumia 900 Windows phone has been cut in half in the critical U.S. market, a little more than three months after the launch of the smartphone at AT&T Inc. T +1.38% stores.
The Lumia 900 hit the market at AT&T stores in April and the device had been priced at $99 with a two-year agreement, but a new price of $49.99 was introduced early Sunday.
The price cut comes as Nokia's smartphone performance is under significant scrutiny given the financial woes the Finnish company has encountered because of market-share losses and pressure on margins.
Nokia reports second-quarter earnings on Thursday following stinging financial losses in recent periods.
Nokia Chief Executive Stephen Elop last month announced further downsizing moves, including 10,000 job reductions and a streamlining of research and development efforts.
"This move is a normal strategy that is put in place during the life cycle of most phones," Nokia spokesman Doug Dawson said in an email. It "allows a broader consumer base to buy this flagship device at a more accessible price."
Price reductions aren't uncommon in the U.S. market, in which carriers like AT&T subsidize the cost of the phone as long as a customer signs a contract. The actual cost of the phone to AT&T isn't public and it is unclear how both companies—Nokia and AT&T—will pay for the new price cut.
Mr. Dawson noted Samsung Electronics Co.'s 005930.SE +4.40% Galaxy IIS at AT&T, which debuted about six months before the Nokia Lumia 900, was on the market for roughly the same period of time as the Lumia 900 before a $50 price drop was implemented.
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