Nokia about to kill off any chance of Lumia success

Just when you thought that Nokia might be able to struggle back to prominance with its Windows 8 based phone, the outfit seems set to stuff it up.

In this case the company is going to ignore the fact that its customers are taking a risk buying the Windows 8 phone and are going to jack up the price so that it is more expensive than anything else on the market.

Analysts told Gadgets that Nokia will struggle to explain the premium on the Lumia.

Ovum analyst Nick Dillon warned that the Windows Phone is still largely an unknown to consumers they would probably expect to pay less if they are taking a risk.

He said that hardware-wise the phones on the market are similar and it would be hard for Nokia to justify the extra cost.

Ben Wood, head of research at British consultancy CCS Insight said that the Samsung’s Galaxy S3 which is the pricing benchmark for a non-Apple flagship smartphone.

Where prices have been announced, they are about ten per cent above the Samsung.

Swedish carriers would sell the Lumia 920 for around 5,700 Swedish crowns, excluding subsidies. This compares with 4,515 crowns asked for a Galaxy S3.

In Italy, the Lumia 920 will sell for 599 euro, compared with 530 euro for the S3, which has been on the market for four months.

The S3 retails for 530 euro in Germany, where Nokia will ask 649 euro for the Lumia. In Russia the Lumia will sell 10 percent above Galaxy S3.

The annoying thing for Nokia and Microsoft is that the Lumia looks like a good phone. But bringing something into the market at such a high price when you need to establish both the phone and the operating system is daft.