As reported in my blog of few days back that Nokia has unveiled Lumia 900 in CES and will be sold in US on the network of AT&T, it appears the retailers in US have started cutting the price of Lumia 710, which was also launched only few days back in US to make way for Lumia 900, which is expected to hit US in March.
Wal-Mart is undercutting other retailers by giving the new phone away for free on a two-year contract. T-Mobile USA, which launched the phone, sells the Lumia 710 for $49.99 on a two-year data plan, as do other retailers such as Best Buy. The price drop by Wal-Mart is a fast one and it’s unclear if other retailers or T-Mobile itself will follow suit.
If US service providers can sell mobile phones free or at very reduced prices on service contract for one or two years then I fail to understand why service providers in India do not replicate such contract schemes here. Prices of newly launched smartphones like iPhone 4S, Samsung Galaxy SII and Nokia Lumia 800 and 710 are quite prohibitive for starters of smartphones and if the service providers can offer these latest devices on contract plans then more and more customers can buy these products, which will not pinch their pockets. Service providers can also increase their customer base and they may not earn from hardware but still they can laugh all the way to their banks for selling their data plans.
Hope one of the leading service providers will come out with attractive service contract plan soon!