The price of Nokia’s flagship Windows Phone, the Lumia 900, was cut in half to $50 over the weekend on AT&T, three months after the device was launched.

The New York Times notes that such a move is typically a sign that a product is not selling well. A spokesman for Nokia tells the newspaper that it’s “a normal strategy that is put in place during the lifecycle of most phones, and allows a broader consumer base to buy this flagship device at a more accessible price.”

[Update: Research by Strategy Analytics shows that the timing of the Lumia price cut is actually in line with other smartphones. Thanks to Robert McLaws for pointing this out.]

Numbers released by Nielsen last week showed the Lumia line capturing a relatively small 0.3 percent of the U.S. smartphone market thus far. In addition to the Lumia 900, the line also includes the Lumia 710 on T-Mobile. Windows Phone overall has 1.3 percent of the market, according to the research firm.

Microsoft and Nokia have been banking on the Lumia 900 to capture the attention of consumers, but smartphone buyers may be more wary of making the leap to Windows Phone for now given the recent news that existing Windows Phone handsets won’t be able to run the new Windows Phone 8 software when it comes out.

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  • ChuksOnwuneme

    Yikes! That was my reaction when I saw this last week. However, having been part of the design team at Nokia for such a long time, all I can say is brace for what’s up their sleeves. Or maybe I’m just too biased, but I still root for my former colleagues. It’s something called ‘sisu’ in the Finnish culture I got to respect, and I suppose they’ll prove this to the market soon enough?

    Disclosure – I worked at the defunct Symbian group at Nokia for a long time, I own a Lumia800, and some of my ex-colleagues work on the Lumia line, hence my bias.

  • Christopher Budd

    Not being catty or trolling here at all. But I can’t help but think this is a follow-on to the news that the 900 (and all other current WPs) won’t run the soon-coming WP8.

    It’s kind of like the deals you get on cars just before next year’s new models come out.

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