Comments on: $700 for Nokia's new phone. Are they nuts?

Nokia's new N97 has hit U.S. shores with a whopping $700 price tag, making it a highly unlikely competitor to any of the latest smartphones launched in the U.S.

From Apple's website:

"For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB). Visit www.wireless.att.com for eligibility information. "

[cosuna]

Nokia and Sony Ericsson should learn that now that Netbooks are $359 or less, that's gonna be the price target for most up beat "smartphones". That is, if you can buy an XP compatible "laptop" for no more than 300 bucks, who in its right mind will buy a "netbook"-wanna be for $700. Xperia's Windows Mobile (aka Mobile) and Nokias N97S60 Symbian OS are well below XP in user interface and apps. Even Intel's Mobiln is far more useful than those two.

And worse yet, Symbian is no match to the multitasking, real-time Mach based iPhone OS. Symbian widgets are pre Windows 95 paradigm, while Cocoa Touch is Quartz based. Windows CE, in the other hand, is an incomplete rethinking of the Windows franchise, which lacks drivers and API useful for even the most basic apps.

We have created Symbian, J2ME and Windows Mobile applications and all are quite useful for simple client/server apps, but lack robustness for anything more sophisticated. We have seen other use Xcode to create beautiful apps for iPhone with just a little effort learning Objective-C.

In the end, the platform's the key and I don't see Nokia, Sony Ericsson nor Palm competing favorable neither with the iPhone (on the smartphone side) nor Window XP and Moblin in the Netbook side.

[Mark_Anderson]

"And worse yet, Symbian is no match to the multitasking, real-time Mach based iPhone OS. "

Ha ha ha ha

[texaslabrat]

LOL yeah..that was pretty funny. Methinks cosuna needs to read up on the multitasking capabilities of his/her precious apple product ;)

[Aanon]

The N97 is not "a netbook-wannabe", because I can put it in my blazer pocket.

The iPhone OS is the least multitasking smartphone (the iPhone won't be smart until DataViz gets DocumentsToGo out the door later this summer) in the market. The iPhone isn't smart, because I cannot transfer contacts, appointments and task lists through Bluetooth and text messages to and from it. The iPhone isn't smart, because I cannot easily transfer documents and other files to and from it - using e-mail, the cloud, MMS and Bluetooth

The iPhone is lacking in rich media support, because it does not support video calls.

That being said, S60 is way too oldfashioned to be appealing to users today.

Oh, and I will exchange my iPhone 3G for an iPhone 3G S 32GB as soon as the latter is released.

[Sabroson]

You have to compare Apples to Apples

How much for an unlocked iPhone in EBay? It usually surpases $700.

I am not saying that the Nokia is better than the iPhone ... I have an iPhone and have not tried the new Nokia to make an intelligent comparison.

[kwhsy82]

Are they nuts? When will CNET cease taking the initial price the phone as its "cost", and always calculate: How much does it cost to own for two years?

I'd pay $1000 for a phone if its plan was $10 a month.

Conversely, I'd pay you $500 to use a phone, if you'd pay $250 month for service.

good grief!

[kenzos2000]

Wow, great journalism!!! Can anyone, anywhere buy a BRAND NEW iPhone or Palm Pre for with 32GB for less than $600-700?? Of course not!!
It's not an apples to apple comparison....If a carrier takes it in the US, then it's will be totally competitive.
And it has Wifi, FM Radio, 5MB camera and Front camera... ready for video calls and pre-loaded with many applications. Apple JUST updated to 3MB camera... ohh, scarry....

People need to stop drinking from the Apple fountain...

[alenas]

I think I can explain position of Nokia in this matter.
US is/was pretty weird place for smartphones. Before iPhone US carriers would sell only few models of smartphones and there was no choice at all. In Europe at the same time you could buy any model of any smartphone (with or without keyboard, different OS'es - WM Standard/Pro, Symbian or Palm) locked or unlocked...
Nokia is European company - and they know that carriers in Europe are not a bunch of old retarted men and carriers choose to sell a lot of smartphones here.
Also Nokia knows that carriers in US think that carrier is GOD and they think carrier knows what US customer wants (thats why they were trying to sell smartphones with keyboards and WITHOUT touchscreens in US before iPhone - and how wrong they were...idiots). So carriers in US are stopping innovation and then everyone wanders why Nokia or other manufacturer with very good smartphone designs is not coming to US.
This is all ridiculous...Like US car companies thinking that they know what customer knows - and instead of innovating - they would just stick to the same old ****....Car companies went bust - now it is time for carriers to understand that they are in the same position - and they should just let innovation take over...
I guess there are too many retired/retarded people who make decisions in US...

[Eddie-c]

I see people are forgetting how much the Razr CELL-PHONE cost back in its' heyday. For an unlocked device it's going to cost more. Heck, prior to yesterdays announcement, if someone on ATT wasn't eligible for the upgrade discount ATT would have charged $499 for a 16GB iPhone.

[UICTamale]

Just agreeing with the above posters that this article is ridiculous for not going over the costs involved in keeping an iphone or pre over the length of the contract you're signing.

The N97 along with any other unlocked nokia phone will work just fine on at&t's $15/month medianet unlimited data plan as compared to the iphone's $30 plan plus $20 for unlimited texting..

This 35 dollar difference in monthly plan costs adds up to $840 over the course of two years... making this phone a bargain for most people compared to the iphone or pre... especially considering the N97 is actually available for $600, not $700. Other unlocked nokias like the E71, E63, or 5800 offer even better value with an initial cost around three to four hundred.

I expect more accurate figures from cnet.

[djcrazy-mpls]

You think thats pricey, check out Vertu. their REAL high end line.

http://en.wikipedia.org/wiki/Vertu and http://www.vertu.com/

[jarturof]

I think is also a difficult market because the USA tend to have a fixation to similar phones, clamshell are rule there, also the local brands have huge impact, even with bad phones, the terrible UI and the worst battery life in Motorola did't stop people to buy them. Also the lack of real "smartphone" features in the first iPhone, that was a basic phone with expensive plan and price, not until now the iPhone is catching some of the features of the Nokia N93 released in 2006 (or it was 2005)

It is a wierd market in the mobile phone business, where glam is more important than features. Just look at this CNet (which I love) reviews of the Nokia phones, they always put fact that are not facts, like the Nokia 5800 flash enabled browser in the review it says it doesn't have it, also the "saying" that iPhone has the best browser, Nokia has the same (webkit), plus tabs and flash, also forget the fact that Nokia has multitasking in the smartphones (all of them)

The famous app store from Apple, Nokia has apps since 2004, and are sold everywhere without restrictions like the ones found in iPhone's

Unless the USA turn to see outside the local Motorola, Apple and the made for USA Samsung you wont realize how cool are mobiles everywhere in the world.

AT&T, Sprint, T-Mobile will not change, if the public want overprice overhype mobiles with more glam than features, they will provide that.

motorola has been dead for 2 yrs. clamshells aren't selling as well as phones with keyboards or smartphones. Nokia may make 60 phones that sell throughout the world but Apple has made 1 phone a year that is recognized throughout the world as reilable and easy to use. (chinese companies make a mint making knockoffs off the iphone). I use the g1 and love androids versatility and reliability also. I will either buy the samsung i7500 or the g2 when they come out. For the majority of u.s. users, simplicity and reliability will win out over over featured phones mostly imho.

[jakemonO]

nice price or crack pipe? definitely crack pipe (w/apologies to jalopnik)

[thesplintercell]

i get the impression that $ 200 is a price point for the author...? otherwise, this $ 200 is usually the price of a smartphone under contract of about 2 yrs. otherwise, the same smartphones you are comparing the N97 to would cost anywhere between $ 350 - $ 600 without a contract (as the N97 is being offered without contract).

i guess you just creating this unfair comparison to have something to write about.

[Maggie Reardon]

Yes the point of the story is to compare what consumers are asked to pay out of pocket up front. Of course the iPhone and Pre are more expensive than $200 without a subsidy, but the carriers are subsidizing the phones to get people to buy them. Nokia doesn't have a similar deal with a carrier, so it has to sell the phone at full retail price. And the $200 price tag is not a figure I chose, it is the price that many carriers have set for the subsidy. I am assuming this price was chosen by carriers because it is a price that consumers are willing to pay for the device.

[massalo]

I love all the Fanboys that show up to defend their phone, but really grow up her point is dead on not very many people want to pay $700 for a phone. Thats why the phone companys subsidize the price. shes not saying that the Iphone or pre are better or worse just that they will sell better in the US with a lower price. Also I looked up the plans on att the $15 data is for mobile web the Smartphone packages are the same as the iphone at $30 a month.

[Maggie Reardon]

Thank you for your post. It's true that the iPhone and the Pre each cost a lot more without the carrier subsidy. But the point I was trying to make is that because of the subsidy more people are likely to buy these devices. If Nokia was able to strike a similar deal with a carrier, the N97 would be a lot more competitive. I agree the smartphone service plans are expensive. And that greatly affects the total cost of ownership. But I don't know why anyone would spend $700 on a phone and then not use all the data functionality that comes with it. Because AT&T's terms of use require all data plan subscribers using a smartphone to use the $30 a month plan, the cost of the service for the Nokia N97 on AT&T's network is about the same as using the iPhone or other smartphone. You could probably get away with using the $15 a month plan, but this plan is designed for feature phones, and it's against AT&T's terms of use to use it for a smartphone. And if AT&T finds out you're using it for a smartphone, they will start charging you $30 a month for the smartphone data plan.

[LENNYBONS]

*Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB). Visit www.wireless.att.com for eligibility information. In CA, MA, and RI, sales tax is collected on the unbundled price of iPhone.

If we are going to report things please lets report them correctly, i am an at&t customer and i went to upgrade but i wasnt eligble so it will cost me a 2yr contract, $499. price tag and a 30 month internet plan , so according to my math 30X12 = 360.00 plus 499.00 = 859 and its a locked phone and a 2yr plan.
the N97 is 699.00 at nokia store, but amazon has it for 603.00 and dell with a coupon had it for 594.00 but its unlocked can be used all around the world or with tmobile in u.s. and im on a family plan so my internet cost me $10.00 a month x12 =120 +699.00 = 819.00 for 1st yr and if i use both for 2yrs I save $240.00 using the n97. I also took the higher priced N97 if you noticed not the amazon or dell price.

So in the end we end up Penny wise and Dollar Foolish.

[Maggie Reardon]

If you re-read the story you'll see that the prices I was comparing were for new AT&T customers who do not have an existing contract and qualify for the subsidized price. The list price of the phone from Nokia is $699.

[jwilson61904]

Using the list price from Nokia is like using the MSRP when shopping for a car. It doesn't represent the true market price, but you work for cnet, and I would assume that you already know that. If you were discussing the price of lcd tv's would you take the price listed at Sony Style which is nearly always higher or would you look at the prices at places like Best Buy or Amazon to set the price?

Sticking with the Nokia price and refusing to acknowledge that the price is less at other major distributors greatly weakens your stance and makes it seem like you are more interested in having the N97 compare negatively to other smartphones on the market instead of focusing on what is a very valid point. The N97 will not be be subsidized through a 2 year carrier contract and as a result, even using the Amazon price, most likely will not reach the price point that American smartphone users are willing to pay. For those who would bring up the initial iphone launch price, I would point out that the hype leading up to its debut was much greater amoung the general population than that of the N97 not to mention that economic conditions were much different.

[LENNYBONS]

Massalo,
its not for the mobile web i get full web on my n85 and i pay 10.00 because of the family plan and i have family text plan if i didnt have that it would be 15.00 per month.

[dumell]

The Nokia N97 comes with a built in unrestricted Skype VOIP client. Carriers do not want their customers to have uncrippled phones like this.

Regarding the price: if you can not afford a $600 unlocked smartphone then you certainly can not afford the actual price of a subsidized one.

[mantan09]

Nokia really does not want to sell their good smart phones in the US. I have been waiting for one for a few years. E71x is one exception but that is really a low end product. The N97 could be a real iPhone competition (for the new 32g 3GS) if it was available subsidized. The claim for the lack of contract is rather silly because almost all smartphone users buy a high end data plan anyways and unlocking a GSM phone for international use is both easy and often allowed by the carrier, including AT&T (except for iPhone).

[UICTamale]

massalo, you don't get it.. it doesn't matter if the initial cost is lower if you're signing a contract for an expensive monthly charge. we're not defending our favorite phone, we're just trying to say that even for $600 up front it's a lot cheaper than the iphone.

and no, you don't need the $30 data plan. you only need that if you buy a 'smartphone' directly from AT&T.

[Maggie Reardon]

If you read AT&T's terms of use for their data plan it indicates that smartphones should use the $30 a month plan. Now there is no way to verify this when you get your SIM card and sigh up for the service with an unlocked phone. But if AT&T notices heavy data usage on your account, which is likely if you are browsing the Web often and using a lot of data on your phone, then the company has the right to switch you to the $30 a month plan. I posted the text from the terms of use in a clarification to the story. And I also posted a link to the terms of use.

[LoudHeart]

Very expensive. Need two full-time jobs to afford such a luxury item. One job is at McDonald's and the other one is at Burger King. :)

[f9c]

I own an unlocked Nokia E71 and unlocked iPhone 3G and can say that both have positive and negative aspects. The Nokia is a better telephone, has push mail, voice dialing, and is best for business use. The Apple has a better operating system and is best for entertainment applications.