Wednesday, November 7, 2012

Nokia And Google Are Making High-End Phones Cheaper

Of the three big mobile ecosystems now competing for users (lets leave BlackBerry out of this, for the time being), two are now pricing their flagship device very aggressively in the U.S. market.

Apple , the third company, has been selling so well and at such thick margins that it has built up a cash pile of similar size to the world’s  largest hedge funds. And remember your economics lecturer saying high margins will inevitably attract new entrants and lower prices? Apple’s two big competitors Microsoft and Google, are now pushing at those margins hard.

AT&T  announced today that the new Nokia Lumia 920, the top-of-the-line Nokia phone running Microsoft ’s Windows Phone 8 system, will go on sale for $100 on a two-year contract — half the price of an Apple iPhone 5 with the same contract.

Read more on The WSJ’s Corporate Intelligence blog.

Coco Sumner Christy Turlington

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