Report: Nokia under pressure to slash Lumia 710 pricing in UK

Nokia will cut the price of its Lumia 710 smartphone in the UK following feedback from operators there that the handset would fail to attract consumer interest if it were sold at higher prices, according to multiple reports.

Click here for pictures and specs of the Nokia Lumia 710.

The Lumia 710, running Microsoft's Windows Phone, which was expected to go on sale in the UK next month for between £25 and £30, will now be priced at around £20 on contract plans, an unnamed source familiar with the situation told Dow Jones Newswires. Nokia is said to be working on a "new pricing platform" for the Lumia 710 that it hopes will drive sales of the low-cost smartphone.

Another unnamed source told the Financial Times: "There is always a bit of pushing over price and in particular if the handset maker is seen as weaker. The Lumia range needs a boost."

Nokia declined to comment, according to the reports.

T-Mobile USA launched the Lumia 710 in the United States Jan. 11 for $50 (£32) with a two-year contract. However, retailer Costco reduced its price for the Lumia 710 to 1 penny with two-year contract and Walmart made the device free with a contract.

Morgan Stanley recently issued a research note claiming that reports from within the supply chain suggested only a moderate increase in Lumia shipments in the first quarter. However, it added that "simply being credible at this stage is a victory."

For more:
- see this Dow Jones Newswires article
- see this Financial Times article (reg. req.)

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