Nokia drops the price of the Lumia 900

Nokia dropped the U.S. price of its new flagship phone, the Lumia 900, prompting concerns that the company is desparate to sell the phones.

The company dropped the two-year contract price of the Lumia 900 from $99 to $49.99, a significant price cut that also sent Nokia’s stock down three percent as investors wondered if the company was having problems selling its latest model.

The Lumia 900 has graced the top-selling list of smartphones on Amazon.com since its release, drawing customers who want to try something other than Apple’s iPhone or smartphones that run on Google’s Android system.

Last week, the company released the Lumia in pink, adding another color to the popular cyan model that helps visually distinguish the phone.

There’s a pretty clear reason why folks wouldn’t want to pony up the full price for the colorful smartphone, though: it won’t support Windows Phone 8, Microsoft’s next generation smartphone. Lumia 900 owners will have special early access to Windows Phone versions of Zynga’s Words with Friends and Draw Something for 60 days this fall, and new Windows 7.5 features such as flip-to-silence, AT&T said in a blog post. But clearly Nokia is hoping that the price drop will convince those on the fence about buying the phone now or waiting until its next generation to snap up the device now.

Both Microsoft and Nokia have sunk a lot into the Lumia 900, giving it one of the biggest launches in history on Easter Sunday. The companies will have a lot of ground to catch up in pursuit of Apple and Samsung, which are leading the smartphone market in the U.S. and around the world.

According to a Nielsen survey published last week, Apple has 34 percent of the U.S. market when it comes to manufacturing phones, while Samsung’s Android block has 17 percent. Nokia phones running Windows Phone 8, the survey said, had just .3 percent of the U.S. market.

Relate d stories:

Windows Phone 8: No support for current devices

Two-thirds of mobile buyers have smartphones

Apple, Samsung, HTC patent cases slog on

Hayley Tsukayama covers consumer technology for The Washington Post.

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