Nokia To Cut Price of Windows Phone Very Quickly

Nokia CEO Stephen Elop has said that the company expects the prices of Nokia smartphones powered by Microsoft's Windows Phone OS to fall extremely quickly.

According to Reuters, Elop told Finnish journalists that Nokia phones on the Windows Phone platform will see significant price cuts shortly after their launch.

“We have become convinced that we can do that very quickly,” he said. The Nokia-Microsoft alliance came as a shock to everyone when Elop announced that Nokia would be abandoning Symbian and MeeGo for Windows Phone.

Nokia's main task will be to regain its share in the smartphone market that is dominated by Apple and Google's Android. Another factor is that the Android OS has started to appear on entry level feature phones, a market which Nokia dominates. If they hope to maintain that lead, Nokia will need to re-think its mobile strategy regarding Windows Phone.

By knocking down the price Nokia are hoping to get Windows phone out on as many devices as they can. A similar tactic was used by Microsoft when selling the Windows Phone 7 in the US on a 'buy one get one free' basis.

Elop also disclosed that he had sold all of his Microsoft shares and purchased 150,000 Nokia shares on February 17th. Nokia share prices have dropped by 20 percent since the company made the Windows Phone announcement.