Right now both Nokia and AT&T are in this boat with the Lumia 900 phone. The Windows Phone 7.x based product has been having a rough time in the market anyway and was reduced shortly after launch to $100 for the phone. Originally it was hoped that Nokia could help Microsoft get back into the game in what has increasingly become a two sided war. However, Nokia and Microsoft have failed to capture the market’s imagination with phones that are seriously underpowered compared to their Google and Apple sporting competition.

To add further insult to injury Microsoft recently announced that current Windows Phone hardware will not be able to upgrade to Windows Phone 8. This was a blow to both Nokia and their supporting carriers. Right now according to some of our sources there is little to no movement in Windows Phone 7 devices. We have highlighted that with Windows 8 Microsoft is looking to ensure their survival, but are not concerned if their partners are still in the car when (or if) they get there. This treatment of Nokia has also fueled the rumor that Microsoft is looking to launch their own branded phone in the near future.

There are also some rumblings that the current state of Nokia and Microsoft might have killed off the chances of collaboration on a Facebook phone in the future. It now seems that this device is not likely to happen the way it was originally predicted and instead we might just see a continuation of the heavy integration with Apple’s iOS that we are seeing in iOS 6. Right now carriers have until October/November to move these units out or they will be looking at a considerable loss. We have a feeling that the Lumia lineup will be the next “free” phone with subscription from many large carriers and even then we are not sure if they will be able to get rid of their inventory.

Meanwhile Microsoft is still pushing forward with their Windows 8 plans without looking back. It is a strategy that we are doubtful will work out for them in the end
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