Telefónica exec: Nokia Lumia 800 is "too expensive"

Nokia's reveal of its Windows Phone-based Lumia 800 smartphone last month will be followed by its launch in parts of Europe late in November, including the UK. However, today Telecoms.com reports that an executive at the Spanish telecommunications company Telefónica has pretty much slammed the Lumia 800, claiming that Nokia has made the phone "too expensive" to succeed.

Simon Lee-Smith, who is the European general manager for devices at the company, said that the Lumia 800, and indeed all of Nokia's premium smartphones are just too pricy. He added, "If Nokia wants to sell in volume, they need to bring out devices which are cost-competitive." At the press event introducing the Lumia 800 it was announced that it would be priced around 420 euros. That price doesn't include taxes or a possible reduction if a person buys the phone under contract.

Lee-Smith seems to be of the opinion that the entire smartphone industry is making a mistake with the prices of high-end devices, saying, "All device manufacturers seem to think that a (euro) 400-plus device is the norm. Well, it isn’t. Customers and operators won’t pay that cost for a device which doesn’t differentiate sufficiently."

That certainly hasn't been the case in the US where we have seen phones that are priced as high as $200, with a two year contract, become huge hits. From what we have gathered the Lumia 800 would be priced around that amount when and if it is released in this country. We think that with Nokia's higher profile in Europe the Lumia 800 has a good shot of being successful in that part of the world, despite the relatively high price.

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11 Comments

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Is this more to do with the fact that O2 (telefonica) aren't selling the Lumia - have a pop at something you're not flogging....

Whilst I appreciate the various price points of smartphones are all similar and the Lumia 800 has been priced accordingly.... I can't help but think that at £249.99 Sim only, they would've sold in the hundreds of thousands if not millions on a global scale.... I would've bought myself & my mrs one each at this price....

Over £250 for a top spec phone these days is borderline rip off...

He is actually correct. Most of us wouldn't see his point of view but Ill explain.

Telefónica is based in Spain and in Spain NO ONE spends money a on a phone. They want the cheapest and if they can get it for free, even better. It is one of the reasons the iPhone while it has moved units, doesn't sell anymore. Android has a bunch of terminals for free when you get a contract with Telefónica. So he is correct in saying that NO ONE wants to spend 400 (or any money at that) on a phone.

This Guy at Telefonica's is a joke. The Lumia 800 is one of the cheapest smartphone sans contract.
By comparison, here in France (with taxes) :
- iPhone 4S 16GB : 629€
- iPhone 4S 64GB : 849€
- HTC Titan : 549,99€
- HTC Radar : 369€

MaDDentist said,
This Guy at Telefonica's is a joke. The Lumia 800 is one of the cheapest smartphone sans contract.
By comparison, here in France (with taxes) :
- iPhone 4S 16GB : 629€
- iPhone 4S 64GB : 849€
- HTC Titan : 549,99€
- HTC Radar : 369€

it's priced 21990 in russia with next phones with same specs
Samsung Galaxy W / Omnia W - 14990
Samsung Galaxy S Plus - 18990
SE Xperia neo - 15490
SE Xperia ray - 15490
LG Optimus Black - 13990
LG Optimus Sol - 12990
HTC Desire S - overpriced at 17890 (HTC follows Nokia steps 3 years ago, poor improvements, high prices)
HTC Incredible S - overpriced at 19490


And MUCH better specs
Samsung Galaxy S II - 25990
Samsung Galaxy R - 19990
LG Optimus 2X - 19890
LG Optimus 3D - 19890


fair price for Nokia 800 is 14990, but considering the system is empty, featureless and it needs market, rather than market needs it, it should cost 12000-13000 at maximum. i.e. it's overvalued for 70%!

I totally agree, the price is higher than Galaxy S2 and the specs are lower. Yes, I know many people will say "WP doesn't need dual core" and things like that, it doesn't matter, many people WILL compare the specs, period. And BTW: I had WP and it was great but because MS decided not to support some European countries with the first release (7.0) I switched to Android. I was very interested in Lumia 800 (great design, build quality) but unfortunatelly it isn't future-proof enough for me to pay premium cash for it.

~400 EUR is the regular price in my country for most smartphones (regardless of whether you get a contract or not).

What's even worse, with the most expensive contract, ~35 EUR per month, you would still pay ~250 EUR for the phone.

He should really stop crying.

Snagging the phone with a free XBOX on orange, £26/mo for 2 years, phone's £100, this comes with 750MB, 200mins and unlim. texts. I'd say that's better then with my Desire cost me 18 months ago (£35 a month for same as above sans free XBOX, 18 months, phone cost £50). However no one will even begin to argue the success of the Desire range of handsets. End of the day, I (unlike these carriers) appreciate what's under the hood and the time and effort it's taken to make a device like this, and I'd totally be willing to pay £100 up front for a device like this (a similarly specced handheld games console would probably set me back at like £200-£250 at least), and then £26 a month. Considering 750MB of internet and the 1000+ texts I send in a month would cost me far more then £26 on PAYG, I actually really appreciate this price point.

Also, this isn't the first time a new smartphone has come out at this price point, even Windows Phones, so why the big hoo-har now?

Well to be fair, Telefonica are on the verge of bankcruptcy if the rumours are to be believed.... They have been for a long time.....

"If Nokia wants to sell in volume, they need to bring out devices which are cost-competitive."

Did he miss the cheaper models Nokia reveled?

Really? Too expensive? Well, maybe the Telefonica executive should give his peers at Brazil a call and tell them that the iPhone 4 should not be sold for US$ 1000 non contract on their portfolio or that the HTC Titan shouldn't be sold at US$ 1100.