By Ed Oswald | Thursday, January 19, 2012 at 1:24 am
The tech blogosphere’ collective head is spinning as Wal-Mart has dropped the price of Nokia’s first commercially available Windows Phone device in the US — the Lumia 710 — to free. Immediately, people began swing that this was a sure sign that the release is a bust: surely a device selling well wouldn’t be available for nothing so quickly? Or would it?
Look, it’s Wal-Mart were talking about here. Land of “Always Low Prices, Always.. Something tells me that we shouldn’t make judgements on the success of a device merely on this retailer’s pricing strategy. It could simply be that Wal-Mart wants to sell more phone. Let’s also consider the competitive landscape.
With the absolute glut of Android phones out there, there are quite a few devices on the market at that “free” price point. Wal-Mart has many of these devices because they fit into the demographic of their consumers: budget-conscious. The Lumia 710 is a great midrange phone, and is similar in functionality to those free devices.
Also look at Best Buy and T-Mobile: both still sell the device for $49.99 with a two-year contract. While Wal-Mart’s decision may accelerate their plans to discount the phone, they certainly are in no rush to join Wal-Mart in the race to the bottom. Nokia has only offered that these phones are selling “well”, so we really have no clue how things are going.
So take a breath, and let the market judge whether Nokia’s gamble was a smart one.