The first Windows Phone with some legs

“Typically, global consumer interest in phones peaks within two months of the launch and then starts dwindling,” Tero Kuittinen writes for Forbes. “That’s why it’s noteworthy that Nokia’s Lumia 520 can boast of a robust search volume climb since the first days of March.”

Kuittinen writes, “It’s not hard to see why the Lumia 520 has enjoyed a summer ignition in consumer interest – it offers a 4-inch touch display with 233 PPI pixel density combined with a 5 MP camera, yet costs less than notable rival value phones like Samsung S Duos… the future of Windows is increasingly resting on Nokia’s budget phones. Could Windows find a viable niche as a budget smartphone OS?”

“The problem with Nokia’s current Lumia 520 pricing aggression is that the company is probably selling the device at a loss or a razor thin operating margin to build up market share,” Kuittinen writes. “Consumers attracted by the rock bottom pricing of the 520 are likely the kind that won’t download many applications, which could make the road to a viable Windows app market long… It’s not clear that the Lumia 520 is attracting genuine smartphone buyers; it could be selling mainly to consumers simply switching from feature phones to the cheapest smartphone. Apple’s upcoming budget iPhone launch could push Windows sales to the budget bracket at an even faster clip”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

19 Comments

  1. “Apple’s upcoming budget iPhone launch could push Windows sales to the budget bracket at an even faster clip” unless, of course, Apple blows it and sells the 5c for $500 which is WAY to expensive for the budget conscious. The 4s is too heavy and too small (3.5″ screen). They have to make a BOLD move and sell the 8 GB 5c at $350. They will clean up and own the smart phone market outright.

    Sadly, I don’t think they’re thinking differently about this…

    1. I don’t think Apple is going to go as low as $350. That would have completely killed the margins and drastically eroded profits on the iPhone line. AAPL would go down to below $400 again, as investors won’t see how they could recover the fat profit margins they had enjoyed all these years.

      $450 on the lowest-cost iPhone is likely the bottom end of the price range. With American carriers providing subsidies of up to $480 for the iPhone, this retail price would effectively render this model “free” (with a contract).

  2. I’m glad they’re doing an interface that isn’t a blatant iPhone knockoff like Android. But I could never walk around with a phone that looks like it was made by Hasbro.

  3. It’s not hard to see why the Lumia 520 has enjoyed a summer ignition in consumer interest – it offers a 4-inch touch display with 233 PPI pixel density combined with a 5 MP camera, yet costs less than notable rival value phones like Samsung S Duos…

    Ehh. I really doubt that’s it. If Apple has proved anything, it’s that the average consumer doesn’t really care about technical specs, especially when it comes to smartphones. It’s more likely that the phone just looks nice in advertisements.

    ——RM

    1. Agreed, APPLE users don’t care about specs. Thats why they buy Apple electronics that are 2 to 3 times more expensive to comparable windows tech and insanely more than anything with an open source os such as Android or Linux . I paid $240 for my straight talk huawei w1 and I love it. The specs are a little low with the 1.2GHz dual core but it runs very smooth. The phone is incredibly thin and well built with front facing camera and a 5mp rear with flash. Apple is excellent for coding and video editing but all of the ease of use for the novice and elderly users hype can be had for FREE with multiple linux versions. Apple is like Twilight and beiber, I don’t hate them specifically but the stereotypical brain dead fans of them.

  4. Sure, Windows 8 is fugly and the app store is laughable. But there is no shame in selling a solid machine with performance limitations at a thin profit margin. That is how Ford started. MS knows it has to grow its way back into relevance.

    In contrast, Google stole everything it ever got, and like it or not, many former Apple households are mixed iOS + Android households. Why? because Apple is too stubborn to offer comprehensive mobile hardware options at different price points. We can only hope that Apple follows a more humble strategy like this MSNokia phone and claws back some of the market from Android the honest way.

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