Lumia 521 with T-Mobile is brilliant, just think the possibilities if Nokia creates even cheaper Lumias than 520, well it could replace a lot of the feature phone loss and begin to sell massive amounts of lower end Lumias. That also bodes very well with the deal they made with Microsoft, because if the can produce massive amounts of WP8 well than their cost for use of WP8 OS will be drastically reduced per phone. It appears Microsoft was not so happy about these low priced Lumias but good thing it's happening. I expect to see even lower priced Lumias soon. Nokia now has top of the line, best of the best smartphone and now they have top of the line low end smartphones, I'm beginning to like this crazy venture through some rough seas.
The Lumia 520 still have to ship in volume first. Nokia should be pushing an even cheaper version of Windows Phone instead of Asha's (which is a loser against cheap Android's). For some reason that I do not understand, Nokia product ramp seems to be very slow. Nokia cannot even supply a few million Lumia phones during production launch, not to mention compete with Samsung or Apple.
this only work if vol. of lumia sale go up enough to offset erosion of margin from lower price handset. so far lumia sale go up but not far enough for this to work. no matter if you blame lack of production or lack of consumer interest some big reversal have to happen first.
but 4xx and 3xx lumia coming anyway. ;)
msft not happy about how fast low cost phone coming because it can lead to low cost license from more vendor than nok.
You have a point. Since Microsoft makes money selling licenses. Microsoft will have to either forgo the low end, or sell license for very cheap which I am sure they don't want to do.
But you seem to have forgotten that Nokia is pre-paying Microsoft for 10s of Millions of licenses (while they are getting the platform payments from Mircosoft) during the 5 year contract whether they use them or not. If Nokia can make the hardware cheap and attractive enough then they are golden since the licensing is not an issue at least for the next 3 years. And Microsoft will love the increase in market share.
Personally I don't think they can go much below than the 520 as the 520 hardware specs are already barebone. What I see is as Nokia introduces new high end phones, the price point of the 520 will go down to where it will be able to compete with the very low end Android phones.