Nokia Lumia is the flagship product for not only Nokia but Microsoft as well. It is marking a comeback for two giants in the world of smart phones which was lost to iOS and Android by Microsoft in terms of OS and then fragmented by various manufacturers that adopted Android.
Microsoft and Nokia have left no stone unturned to create hype around the Windows phone Lumia. While Nokia invested heavily on mass media campaign (tv and radio ads) and also on online advertisement for promotion of Lumia, Microsoft took charge on the offline front by sponsoring events and hosting student community for app development. Lumia was introduced in two versions, Lumia 710 with a price point of Rs.19,000 and Lumia 800 at about Rs.30,000. Despite the huge price difference, there was little difference between the two models in terms of features – a higher resolution camera and a better screen resolution. None of these justify a difference of Rs.10,000. May be Nokia is trying to play like apple here.
The marketing of both these models are quite interesting. In the intial phase, Lumia 800 was the only one being promoted. Even on the shops Lumia 800 was made more prominent in terms of visibility. Soon with launch of Samsung Omnia, Lumia 800 lost visibility and then promotion of Lumia 710 started. A scheming the cream marketing I would guess.
While the high features of Lumia 800 helped establish a good brand, the same effect rubbed on to Lumia 710 at a more affordable price. Adding to that, Lumia 710′s price was slashed to about Rs.15k and then another round of big promotion to gain grounds. Lumia 710 sales have picked up but still does not match that of Samsung Omnia.
Lumia 800 is definitely a good product but not worthy enough for its price. At Rs.30K level it is competing with likes of Samsung Galaxy S2. Also, the ever aspirational Apple’s iPhone is also not far. This is a battle hard to win. Microsoft and Nokia should make the products more reachable and let customers first buy their products to build a trust, something that Nokia enjoyed for a long time, long ago. It would be a good move by Mircosoft to introduce Windows phone at all price points and not stick to the upper crest. The premium play, the way Blackberry did it, may not work in current market where Android is getting most things right.
UPDATE (3rd March 2012): It seems someone at Nokia heard us. Nokia Lumia 800 price has been dropped to a Rs.23500 levels. A little more in reach.
