iPhone 4S Rival Alert : Nokia Lumia 800 Too Expensive For Carriers?

Now this is a surprise, according to an executive for Telefonica, the parent company of UK-based mobile phone carrier O2, the new Nokia Lumia 800 might not be cheap enough for them.

In a thinly veiled statement to news website Telecoms.com, Simon Lee-Smith said "All device manufacturers seem to think that a €400-plus device is the norm. Well, it isn't. Customers and operators won't pay that cost for a device which doesn't differentiate sufficiently."

The Lumia 800 will retail for £399 in the UK at 3 on PAYG and Nokia expects it to sell for around €420, although that figure doesn't include VAT which can add another 100 or so to the price of the handset.

We reported yesterday that Nokia could be pushing back the introduction of SIM-free Lumias to 2012, according to a report from one Nokia reseller.

This could be indicative that the Lumia 800 is selling very well on contracts and PAYG; so well that Nokia doesn't feel the need, at least for now, to increase to match any temporary surge in orders.

The Nokia Lumia 800 is a superb handset but compared to existing devices like the first generation LG Windows Phone 7, it doesn't offer a compelling alternative, especially at more than twice the price.