Elop: Caution and genuine supply issues both to blame for Nokia Lumia 920 shortages

Elop: Caution and genuine supply issues both to blame for Nokia Lumia 920 shortagesYesterday Nokia revealed it had sold 4.4m Lumia smartphones in Q4 2012 despite the widely publicised shortage of flagship Lumia 920 units practically worldwide.

But unlikely with the kind of scarcity marketing tactics Apple is regularly accused of when launching new iDevices, Nokia clearly hasn't benefited from the situation. So what exactly went wrong?

Well, WMPowerUser has pulled together several strands of information to suggest that the shortage of Lumia 920s is the result both of caution on Nokia's part, and of issues on the component supply side of things.

During his conference call to announce the better-than-expected Lumia sales this week, Nokia CEO Stephen Elop revealed that the shortage of the Windows Phone 8 flagship was partly down to Nokia being “very deliberate” and “thoughtful” in not wanting to end up with a stockpile of unsold devices that would have to be heavily discounted to shift – which is largely what happened a year ago with the first generation WP7 releases.

But Elop also claimed there were supply-side issues that had led to shortages of key components, and therefore a further reduction of available handsets.

“(We are) working with suppliers and operators to work through the situation today,” Elop insisted.

He even talked openly about speculation that the new Lumias' prices would drop in the coming months to maintain sales, implying that price discounting was on the way, but was itself being delayed by the component supply shortage.

“Other parties may be making decisions to drive traffic or to change behaviour... but broadly speaking, this hasn’t been a price discounting environment.”

Make of that what you will, but it does seem to suggest Nokia expects it'll have to start slashing prices to maintain its slow-but-steady increase in WP8 smartphone sales, especially with Symbian sales now a minor contributor and the next round of major handset releases still probably a fair way off.

Read more about: Windows PhoneNokia Lumia 920

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11 comments

Pondlife  Jan. 11, 2013 at 19:12

Not really noticed any shortage

mightyforest  Jan. 11, 2013 at 19:20

well china sold out in a hour or something. EE had very little or none when I enquired

Pondlife  Jan. 11, 2013 at 19:33

Depends how you asked, EE weren't so likely to say leave it a couple of months it'll be cheaper then were they, make it seem in demand and you might buy it faster at the higher price...

mightyforest  Jan. 11, 2013 at 19:39

me: Hello do you have any nokia 920s in stock
EE Rep: No sorry all gone

only found 1 store with stock left but after enquiring he wouldn't let me buy off contract

JanSt / MOD  Jan. 11, 2013 at 19:50

he said they were “still dealing with (supply) constraints".

Hahaha a.k.a. Elop's decision to do network exclusives. That article collage is so much hot air.

AhmadCentral  Jan. 11, 2013 at 21:48

I think the exclusive period with EE has ended. Three & Vodafone have announced today they'll be stocking the 920 and 620 soon.

JanSt / MOD  Jan. 11, 2013 at 21:50

I think the exclusive period with EE has ended. Three have announced today they'll be stocking the 920 and 620 soon.

Yes. But it was the dumbest move ever to have the exclusives in the 1st place.

AhmadCentral  Jan. 11, 2013 at 21:56

I never said it wasn't a dumb move. Clearly you didn't thoroughly read through my bias views in that lumia sales thread :p

JanSt / MOD  Jan. 11, 2013 at 22:26

I never said it wasn't a dumb move. Clearly you didn't thoroughly read through my bias views in that lumia sales thread :p Damn, you troll well :p

AhmadCentral  Jan. 11, 2013 at 22:30

Well I do live under a bridge... like a troll... get it?


... I'll get my coat.

Pondlife  Jan. 11, 2013 at 23:29

Come to think of it, isn't supply issues their fault anyway? Maybe exclusives just because they didn't have enough to spread around the networks shelves..

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