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Nokia is planning to undercut rivals to get a bigger marketshare?

According the Reuters, the company’s CEO Stephen Elop said: “You see us pricing the devices so that that we can get what we think will be a good volume,” he said at an industry conference in Barcelona.

It’s been a tough few years for Nokia as the company has lost ground in the top-end of the smartphone segment to Apple, HTC and Samsung. While Windows phone has seen its share drop to 1.5% in Q3 2011.

Nokia’s first Windows Phone handset, the Lumia 800 went on sale today. We’ve been looking at prices online, and you can get the handset free on a £26 per month contract, which equates to £357 sim free – approximately 420 euros. We know the Nokia Lumia 710 will cost around 270 euros, if we apply the same ratio to that calculation, it could be as cheap as £230 sim free or around £16.70 a month.

With the cheapest alternative Windows Phone 7.5 device, the HTC Radar available from £22.50 a month, Nokia’s efforts could indeed undercut the competition by a significant margin and help Nokia secure sales for the coming year.

Via: Reuters