The company launched the Lumia line of devices in October in Europe with two devices, the Lumia 800 and Lumia 710. Nokia began selling the Lumia 710 this month on T-Mobile USA. It's gearing up for a big push in the U.S. with the new Lumia 900, which will operate on AT&T's network. Elop said at the Lumia 900 launch at the CES show earlier this month that the company will be aggressive with pricing on the new devices to entice customers. And yesterday there was a leak that Nokia will offer the new Lumia 900, which is the first LTE Windows Phone device, at $100 with a two-year contract. The new device will go on sale in March.
While it seems that the Lumia line of devices is gaining traction, Nokia still has a long way to go, Aggressive pricing may give the company a tiny foothold in the U.S., but it's clear that the transition away from its older Symbian operating system to the new Windows Phone platform has not been easy, During a conference call with analysts, Elop noted the difficulties the company faces, Nokia is in the "heart of its transition" right now and will continue to be in transition through 2012, he said, But Elop added that he believes the company's iphone case gun long-term potential is still there..
In the U.S. market, he said, carriers are highly motivated to promote a third ecosystem or alternative to the Apple iPhone and Google Android choices already available. He didn't announce further products, but he hinted that Nokia may eventually offer other devices that will leverage Microsoft's software. "You can see the commonality of experience across handsets, PCs, and tablets that Microsoft has created," he said. "And operators see the opportunity to participate in that ecosystem in a larger way. So we'll see how that plays out over time.".
Nokia also pointed out that it has received the first of many quarterly payments from Microsoft as part of the companies' strategic relationship, which totaled $250 million in the fourth quarter, This payment and future payments will help fund Nokia's product development for the Windows Phone platform, Meanwhile, Microsoft also licenses technology from Nokia, Executives have noted that they expect the two companies to transfer billions of dollars in payments to each other over the next several years iphone case gun as a result of this relationship, Nokia's executives also noted the portion of this initial payment from Microsoft was not significant enough to affect the company's gross margins..
Nokia and Microsoft are working together to get the cost of the devices as low as possible, since that should help spur adoption. And Elop said he's already seen the fruits of the labors paying off in the U.S. at T-Mobile, where the Lumia 710 is priced at an attractive $49. But where the company is likely to struggle over the next several quarters is in the traditional Symbian business. While Nokia has shifted its smartphone business to Windows Phone, it has promised to maintain Symbian through 2016. But changes in the marketplace have resulted in slower sales of Symbian devices, Elop noted.