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Microsoft Follows Purchase Of Nokia Phones With Lumia Price Cut

Risks

The price cut could indicate that sales are not doing as well as Microsoft and Nokia had hoped. And Sony could prove to be a bigger competitive threat to Microsoft’s Lumia. Despite the risks, Microsoft may raise its marketing budget to promote the Lumia. If Microsoft gets the Lumia 1020 on all other carriers, including Verizon (VZ), T-Mobile (TMUS), and Sprint (S), it could gain smartphone market share, boosting its Windows Phone operating system.

(Written by Chris Lau, a Kapitall contributor. All data sourced from Zacks Investment Research.)

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