Desperate for success in the Smartphone market Nokia in partnership with Microsoft is set to splash bucket loads of cash at carriers, including Vodafone, Optus and Telstra, in an effort to get consumers to buy their Windows Nokia phone’s running the new Mango version of Microsoft’s Windows Phone OS. Meanwhile Microsoft is set to slash the costs of their new phones.
According to Windows Magazine Nokia will spend $130M dollars over six months promoting their new Windows Phone offering in an attempt to ween consumers off their iPhone and Android devices. Nokia is also set to target Blackberry consumers despite RIM getting set to launch seven new Blackberry models this year.
In recent months the Finnish Company has slashed 7,000 jobs and is now struggling to make a profit after being forced into the bottom end of mobile phone market with prepaid handsets.
Their much heralded Nokia 8 Smartphone was a “disaster” according to Telstra store officials. “We range it but no one asks for it” said one official.
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Recently Microsoft admitted that their recent attempts at taking on Google and Apple in the phone market with their new Windows Phone 7 had failed despite a $400M investment in carriers.
Late last year Telstra was given a multimillion dollar incentive and were an exclusive launch partner for the failed Windows Phone which has failed to attract more than 3% of the market.
In a big leg up for Nokia, Microsoft said that it plans to cut the cost of smartphones running its Windows Phone 7 mobile operating system by as much as half over the next year.
Speaking at the Microsoft’s Worldwide Partner Conference a leading Microsoft executive said that prices before carrier discounts for long-term contracts will be in the US$100-150 range, predicted Andy Lees, president of the Windows Phone division.
Currently equivalent models cost $200 or more, he said. And a year ago, they were selling for more than $400.
Lees also confirmed that Microsoft won’t be offering its Windows Mobile OS to tablet computer makers. “We view a tablet as a sort of PC,” Lees said.
The marketing campaign is set to commence in October, just before the yet-to-be-announced first Windows Phone-running Nokia handset arrives.
Marketing Magazine reported a Nokia official saying “We are excited about the Nokia with Windows phone, but it’s not our policy to comment on specific campaigns for unannounced products”.