[credit provider=”Ellis Hamburger, Business Insider”]
In a recent interview with CNET, Nokia CEO Stephen Elop explained why his company only released its new flagship Windows Phone, the Lumia 920, on AT&T.Here’s the key quote:
One of the things we had learned with the first launch was being very narrow would yield better results for us. We take a product and go exclusive with a particular carrier. In a market where subsidy and marketing dollars are heavy, we encourage them to promote it as a hero product, and use the subsidy to drive down the pricing to a competitive point. It also gives you access to in-store resources.
It’s an interesting strategy, but not one that has worked well for Nokia in the past. The company’s last flagship phone, the Lumia 900, was also exclusive to AT&T, but it didn’t sell very well.
In the interview, Elop wouldn’t say how many Lumia 920s have been sold so far, but he did say demand is high. He also hinted that Nokia may team up with Verizon soon to launch a flagship device.