AT&T Nokia Lumia 1020 price and Windows Phone OS slows sales

When Nokia announced the Lumia 1020 the company believed its 41-megapixel camera would be a game changer, but it seems off to a slow start.

Things were looking good, reviewers were very impressed and AT&T sold out of its initial pre-orders for the smartphone, but a new report claims sales are slow.

When Nokia announced the Lumia 1020 it included a feature the company hoped would be a hit with consumers and it would also be used to set it apart from its rivals. The company decided to ship the Windows Phone-powered Lumia 1020 with a high-end, feature-rich 41-megapixel camera. The smartphone has received very positive reviews from the tech world and Nokia's U.S. exclusive carrier, AT&T, reported that it had sold out of its initial pre-order allotment within two days of offering the smartphone to customers. A new report, however, claims that the Lumia 1020's major feature is now contributing to slow sales of the smartphone.

A report from Barrion's cites Baird analyst William Power, who says that even though the Lumia 1020 was believed to become a hit for Nokia, sales of the smartphone have been slow ever since it hit stores.

"Last week, we visited and contacted AT&T stores to gauge early sales of the Nokia Lumia 1020. Reps we spoke with were nearly unanimously positive about the device's hardware, especially with the performance of the 41-megapixel camera. In contrast, those same reps were quick to point out that early sales were modest at best. When asked what was limiting consumer adoption of the 1020, reps commonly cited the $300 price target and consumer concern with switching over to a new OS as the biggest hurdles. We only found a handful of stores that sold out of the device on launch day, and in several cases, we were the first people to ask specifically about the 1020."

It appears that packing in a 41-megapixel camera, while impressive, has also contributed to lackluster sales.  The smartphone's $300 price tag takes into account the high-end camera, but consumers have become accustomed to paying around $199 for a new flagship smartphone. Windows Phone also lacks the slew of major apps that are available on both iOS and Android, so consumers appear to be seeing it as a drawback when thinking about purchasing the Lumia 1020.

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