The Lumia 900,
Nokia's most ambitious effort to regain ground in the smartphone market, is now selling at half of its original price in the United States, just three months after its release.
As of Sunday the phone can be purchased for $50 with a two-year contract through AT&T.
The price cut from $99 to $49.99 comes on the heels of Microsoft's announcement in June that Windows Phone 7 handsets like the Lumia 900 won't be upgradeable to the Windows Phone 8 operating system the software giant will release later this year.
A significant price cut for a new handset typically means it has not been selling very well. Nokia and AT&T have not disclosed official sales figures for Lumia 900.
Nokia spokesman Doug Dawson has since shot down market concerns, saying such cuts were "an industry standard practice". He pointed to the Samsung Galaxy S2, which received a $50 price cut on AT&T after roughly the same amount of time on the market.
Nokia spokesman Doug Dawson told
The Wall Street Journal: "I realize we're under a microscope at the moment and everything we do is under closer scrutiny, but this move is a normal strategy that is put in place during the lifecycle of most phones, and allows a broader consumer base to buy this flagship device at a more accessible price."
Mark Siegel, a spokesman for AT&T, told
The New York Times that the company "continues to be pleased with sales of the Lumia, which is part of our industry-leading portfolio of smartphones, and we routinely offer promotions on handsets."
The Windows Phone 8 news was seen as a disaster for the Lumia 900, with many observers wondering how Nokia would convince people to buy a smartphone that will never get Microsoft's slick next-gen handset OS.
In terms of sales, Nokia was the leader in the handset space for over a dozen years. This year, Samsung finally dethroned the Finnish company with its Android phones that have gained immense popularity in the market.
Available in blue, white, black and pink colour, the smartphone features a 4.3-inch screen and packs a 1.4-GHz processor along with an 8-megapixel camera with Carl Zeiss lens.
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