Pricing the 950 in an Apple/Android market. Thoughts?

[imnotevenhererightnow]

Hi all, in the last ~24 hours, I've watched both OnePlus and Motorola announce ~5.5" devices with similar specs to the upcoming 950/XL.

In particular, the Moto X Style:
SD 808, 1.8GHz
5.7" QHD
21MP f/2.0 camera
3000mAh battery.
SD cards up to 128GB supported.
Starting price (16GB model): $399

Question: How do you think the fierce competition within the Android world might affect (if at all) how MS decides to price the 950/XL moving forward?

I'm totally willing to pay a premium on a Lumia because I love the OS, but I can admit that the average consumer might not. What kind of price(s) could/should Microsoft expect to command for the 950/XL?

EDIT: apologies if this is in the wrong forum.

 

[Ruben de Boer]

I think they will both hang around the 600 $ or € but i hope they price it around 400$. if they do this they could show lumia's are very good affordable phones, on the other hand people might not think they are as good as other 600$ phones. They probably also want to make enough profit.

 

[KllR007]

500 for 950 and 600 for XL.. After some months it will be -100 on each.

 

[EMitchell]

MSFT will likely price the phones to match the apple phones. These are flagship devices for MSFT, intended to show off the features of the OS. MS realizes it's an apple / android world right now, but so far they haven't shown a willingness to buy their way into the market. I'm not sure I agree with the approach, but apparently they are willing to limit sales to a small segment of the buying public to show they too can produce a very high-end phone. I'm going to guess $599 / 950, $699 / 950XL.

 

[lparsons21]

If the prices come in at around the $600 mark, then I think that will result in MS not gaining any market share at all. The problem for MS is so much centered around the 'app hole' that a high priced Windows phone just isn't going to sell in good enough numbers imo.
And you have to wonder what ATT and/or VZW will do. Currently ATT sells exactly one Windows phone and VZW sells two. That has to change!

 

[Axeelant]

Don't know about you guys, but $600 seems a very good price to me, considering iphones cost $1000, also s6,...

So that would increase the market share i think...

 

[lparsons21]

Since the S6 and iPhone 6 don't cost $1000 unless you jack the ram through the roof, I can't imagine a $600 Windows phone being a competitive seller. $600 or thereabouts is the entry price for both the S6 and iPhone 6.

 

[tgp]

The 950 doesn't stand a chance if it starts at $600. As stated above, that's close to what the current most popular flagships start at. There are plenty of others that start lower, such as the OnePlus One/Two and the Moto X, and probably the smaller of the upcoming Nexii.

Sent from whatever device I happen to be using today using Tapatalk

 

[spiff_p239]

At this point, I really feel as though Microsoft has to undercut the iPhone and Galaxy S6 if they hope to gain market share, especially in the United States. If I don't see a new Preview build with substantial improvements before Apple announces the 6s, I may be jumping ship. The most I'd be willing to pay for the 950 would be $500, especially seeing what Motorola has done with the Moto X Play and Style.

 

[imnotevenhererightnow]

At this point, I really feel as though Microsoft has to undercut the iPhone and Galaxy S6 if they hope to gain market share, especially in the United States. If I don't see a new Preview build with substantial improvements before Apple announces the 6s, I may be jumping ship. The most I'd be willing to pay for the 950 would be $500, especially seeing what Motorola has done with the Moto X Play and Style.

You're pretty much right where I'm at. I can spec a Moto X Pure with 64GB for $499. I'm not really willing to go much over that for a WP. I could see paying $550 for a Cityman, but the Talkman really shouldn't be anything over $500.

What's insane is that MS had the nerve to price the L830 at $450 last year with an SD400. That seems almost comical in retrospect given the specs that manufacturers are offering in the $300-$450 range right now.

 

[gourav mopidevi]

if they want to sell their os to public then they should lower/null hadware profit....if they want to sell hardware which I doubth by seeing these ugly devices......so I would pay not more than $460 for L950...if they release them for iPhone 6S cost just wait for 3 months it falls to $460....it would be good to release them at $460 and maintain price for a year

 

[ArtForm]

I am in the market for a phone right now. With the OnePlus 2 at $329 for great specs, the Nexus 5x looking to be around $350, and the Moto X Pure at $400, there is no question for me: if the Lumia 950 is between $300-$400, like these, for an upper-midrange flagship in 2015, then I will choose Lumia over Android for the OS and features. But if they are going to try to pass the 950 off as a true flagship of $500-$700 quality, then I will choose android. I really want Windows Phone 10, but not if I am going to have to pay more for lesser specs and only a few truly unique benefits (Continuum, Hello, and to a lesser extent universal apps)

Microsoft is not competing with iPhone, which sells its name for a $200 premium. They are competing with Android, which distinguishes itself with hardware/price ratio. Windows has already shown they are converting to a "cloud first, mobile first" world where you can get just as capable Microsoft app ecosystem experience on the Android/iPhone apps as on Windows phone. Continuum is amazing, and Hello is great, but not enough to ask a premium for the device. If they don't compete with Android price points for similar specs, they will not sustain any growth. And without the smart-phone leg of their 3-legged ecosystem stool, things just aren't as appealing in the world of Universal apps, much less iphone/android apps being switched to Windows 10

 

[gemini5150]

I would estimate that since they are poly carb, they should come in at a lower price point than iPhone or galaxy. saving money on metal and passing on the savings to us. At least I hope. I don't want it to cost 600+ just to look like they are as good as an iPhone. I just wish it had a lanyard like the 1020 did.

 

[Chemilinski]

I agree with the general sentiment here, that they have to price is around $400 in order to compete with the mid-tier Android phones.
However, also having these premium features like Continuum, QuadHD display and a 20 MPX camera with OIS, and no doubt they will throw in a year of Office 365 with every phone for the sake of it being a 'For people who do' phone + because of Continuum.. I will be expecting the 950 to be at least $500, if not more, as I'm sure Microsoft see this as a premium proposition and will not want to lower themselves so much price-wise, despite competition.

But of course.. I agree, in order to beat-out the competition, it has to be ~$400 to be in a safer position of achieving that.

 

[Javier De Pablo Losada]

I agree with most of you guys. The Lumia 930 was not as high priced as the direct competence at the time. However, it's well known that you don't the hardware Android requires. My Lumia 830 was (in my opinion) overpriced at first, but I bought it at 250€ and I think it's great. 500$ (in Europe 500€ probably) would be awesome and I think I'd think about buying it (if it comes in colors other than black and white, but that's another topic). If it costs the same as a S6 or iphone 6s, people won't buy it. I wouldn't buy it and I love the SO

 

[ArtForm]

I am in the market for a phone right now. With the OnePlus 2 at $329 for great specs, the Nexus 5x looking to be around $350, and the Moto X Pure at $400, there is no question for me: if the Lumia 950 is between $300-$400, like these, for an upper-midrange flagship in 2015, then I will choose Lumia over Android for the OS and features. But if they are going to try to pass the 950 off as a true flagship of $500-$700 quality, then I will choose android. I really want Windows Phone 10, but not if I am going to have to pay more for lesser specs and only a few truly unique benefits (Continuum, Hello, and to a lesser extent universal apps)

Microsoft is not competing with iPhone, which sells its name for a $200 premium. They are competing with Android, which distinguishes itself with hardware/price ratio. Windows has already shown they are converting to a "cloud first, mobile first" world where you can get just as capable Microsoft app ecosystem experience on the Android/iPhone apps as on Windows phone. Continuum is amazing, and Hello is great, but not enough to ask a premium for the device. If they don't compete with Android price points for similar specs, they will not sustain any growth. And without the smart-phone leg of their 3-legged ecosystem stool, things just aren't as appealing in the world of Universal apps, much less iphone/android apps being switched to Windows 10

Upon further consideration of my own comments, and more research into exactly what the 950/XL are offering, I actually see this device as more of a $500 phone. Still not nearly in the class of the S6. Definitely on par with iPhone hardware, but lacking name recognition. Better, however, in a few important respects as opposed to a Moto X pure or likely even the Nexus 5x. $500 sounds quite reasonable and probably the "just right" point.

 

[Captpt]

Honestly if MS really wants to make a real move into the iPhone and Galaxy phone market they got to get people to buy the Lumia 950 and undercutting their competition would be the absolute best way to do it.. I am most definitely in the market for a replacement for my Note 4 and have been purposely waiting for the Lumia 950 as hopefully its replacement but if MS prices it the same as the iPhone or Galaxy they probably will lose my sale, the iPhone and Galaxy are 2 well proven and established phone lines and until MS proves the 950 series is in the same ballpark with these phones they shouldn't expect to price their flagship in the same waters.. $400-$475 for the 950 and $550-$600 for the 950XL is where I think and hope they retail for.
A nice $$ discount for preordering would really be a great kick off also!!

 

[Harry Wild]

What is missing is a mobile payment app like the competition has: Apple Pay, Samsung Pay, Android Pay.

That one of the major reason I went back to the iPhone. Lack of apps and high quality apps.

 

[Lee Power]

Lumia 930 has NFC payment option in the settings IF you can get hold of a sim card that also supports the function, never seen a UK mobile operator that supports it.

 

[Motel75]

One thing to think about: In Germany, if something costs 470 euros or less (including tax), you can deduct it from your taxes in a single year. If it's more than that, you have to spread it out over three years. (I'm simplifying quite a bit here.) I'd hope the price point for the 950 is - you guessed it - 470 or less.