Okay, I'm just adding some context
I would think that's because the idea behind the X range isn't to do with specifically benefiting WP. That's not it's aim as far as I'm aware.
At MWC Elop did in fact state: "By using Microsoft's services, Nokia X becomes a feeder system for Lumia" (
video at 31:55)
I assume this is the source for the many articles proclaiming that Nokia X is (or should be) a stepping stone onto WP. I don't buy into the stepping stone argument any more than you do, but the CEO of Nokia has explicitly stated that the X range should benefit WP.
Beyond that, Elop provided two other reasons for this device's existence:
They should have waited until WP8.1 is released with lower specs and on-screen nav buttons and let Nokia and OEM's bring out even cheaper devices than the 520 but with them obviously running WP.
Elop did explicitly state that: "the Nokia X's price point will always trend below that of WP".
However, all the usual suspects are focusing only on the bill of materials. Their argument is that the cost difference between a Snapdragon 200 based Lumia and a Snapdragon 200 based Nokia X is so small, that it in no way justifies the existence of a separate family of smartphones. That is probably true. Nevertheless, they are ignoring the costs for the OS. Whether MS factors those into the sales price is irrelevant, as those costs exist either way.
The cost comparison to Android is a lot more interesting. MS is unlikely to take Nokia (themselves) to court over IP licensing, meaning they are truly the only OEM that gets AOSP for absolutely nothing. That is easily $5 right there. Compared to a fully licensed/certified Android device, the savings increase further. In the $60 price range, where these devices will soon be headed, and in countries where monthly take home pay is around $300, $6 or $7 is a lot of money. I suspect this allows MS to easily undercut the similarly spec'ed android competition, by an amount that is significant in developing nations.
What would happen if MS became the Android OEM that could offer the best "bang for your buck" across all growth markets... (I'm not saying this will happen, I'm still sceptical about the "bang" part)
The X range is really there to push Microsoft's services (Skype, OneDrive, Bing etc) to people who would have otherwise bought some other low end Android device and would have probably not been presented with these services.
Pretty much exactly what Elop said.
For now, the above quotes (one paraphrased) represent the only official information we've got.
My take:
- They don't believe the stepping stone argument themselves.
- MS could be in a position to undercut every last low-end Android OEM out there.
- I believe that the services angle plays a role, but Nokia isn't letting on to everything (the fact that all of MS' services are already on Android is just one indicator).
If the Nokia X sells reasonably well and the app stores actually contain what people expect, I predict we will see mid-range Nokia X phones priced above the Lumia 520 within 9 months.