Nokia Lowers Price of Lumia 900 in Last Ditch Effort

Nokia Lowers Price of Lumia 900 in Last Ditch Effort

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) stay in the smartphone industry has not been the most blissful of visits, has it? Filtering through an industry that is, by and large, dominated by Apple Inc.  (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG)  has not only proven to be an uphill task, but has also come as a big blow to the bulging confidence that investors once held in Nokia shares.

This bearish outlook sets in after Nokia cut the price on its landmark Lumia smartphones. As expected, the price cut has not come as welcome news to investors.

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Analysts have triggered a buzz, and investors are endlessly rambling about the “not so bright future”, of the once most dominant force in the global cellular phone industry.

These price cuts definitely spell a lot of despair on Nokia’s side. It doesn’t take a genius to know that Nokia is desperate. In fact, its situation pretty much gives material meaning to the age-old proverb which paints a picture of a drowning man clutching at a straw.

Last ditch attempt

I believe that Nokia Corporation (NYSE:NOK) has used up all the cards in its deck. The price cuts are indications that Nokia has resorted to last ditch attempts.

The prevailing circumstances snuff out all pockets of hope. For starters, Microsoft’s due to be released Windows Phone 8 lacks the ability to run on the Lumia. This means that as far as software advancements are concerned, the Lumia 900’s run has hit a dead end. Rational consumers will not give it much thought, especially after considering the imminent release of the iPhone 5 in September.

Another big blow, and greater indication that Nokia is indeed clutching at a straw, is the need to compete with the iPhone and Android based smartphones. Fumble through your pockets… the odds are that you have an iPhone or an Android based smartphones. In fact, things could remain the same in future.

In case you think this is farfetched, analysts at Reuters beg to differ. A poll by Reuters, revealed that Samsung is expected to sell 50 million smartphones, Apple 30 million and Nokia a lesser 10 million. These numbers clearly show that the smartphone industry is a two horse race (Nokia is on the sidelines of course).

It’s Been a Short Run

The reality of the matter is, that it’s been a short run. Nokia’s prospects in the smartphone industry have quickly evaporated. Nokia needs to get back to the drawing board and look for a way to make a comeback. Investors are jittery, and the next few weeks will probably be marked by a lot of selling.

Shares in Nokia Oyj dipped more than 3 percent Monday morning.