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This article was published on March 23, 2012

Nokia said to pay $25 million to make the Lumia 900 AT&T’s ‘Company Use’ phone

Nokia said to pay $25 million to make the Lumia 900 AT&T’s ‘Company Use’ phone
Alex Wilhelm
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Alex Wilhelm

Alex Wilhelm is a San Francisco-based writer. You can find Alex on Twitter, and on Facebook. You can reach Alex via email at [email protected] Alex Wilhelm is a San Francisco-based writer. You can find Alex on Twitter, and on Facebook. You can reach Alex via email at [email protected]

AT&T employees are about to be given a rather interesting proposition: turn in that free iPhone or Android handset that you’ve been using, if you want a free Nokia Lumia 900.

Intrigued? According to well placed sources in the Windows Phone community, Nokia has dropped a fat payment, up to $25 million, to make its forthcoming Lumia 900, a WP7.5 phone, the new designated employee handset of AT&T. Sure, with Microsoft’s help, Nokia can rock the payment, but why would it do so?

The idea is to make AT&T’s staff more familiar with the Windows Phone line. It’s a rather forward move by Nokia, as they are essentially saying to smartphone salespeople: our handset is better than your current iOS or Android device. If the reps switch over, and then find the Lumia 900 lacking, they aren’t going to have much nice about the line to say to consumers who are looking for a new handset.

Therefore, this bet by Nokia, all $25 million of it, is a representation of its confidence in its hardware, and Windows Phone as a platform. Nokia therefore think that its creation is as good, if not better, than what is in the market currently, and is putting dollars where its confidence is.

Here’s the kicker: Nokia is expecting an 80% uptake rate for the deal. Will that many people switch? Time will tell. For now, we know how much Nokia is wagering that it’s Lumia 900 handset is the bee’s knees.