In the UK, the Lumia 620 price including VAT is expected to be around 230 pounds – far below the 520 pound price of the Lumia 920. The Lumia 920 launched at 38’000 rupees in India, basically on par with the latest iPhone. The 620 is expected to launch close to the magical 20’000 rupee level and drop below that threshold by 2Q13. The Lumia 620 is thus the kind of phone that used to be Nokia’s bread and butter – an affordable model for middle income households, with some high-end flourishes and a design that sets it apart from Asian competition. A modest price premium that boosts operating margin clearly north of 5%.

The 4Q12 demonstrated that Nokia has cleared the first hurdle with its new Lumia model range. It got the flagship 920 out in time for Christmas in Europe and North America. The early demand was there. Now comes the mass market competition against Samsung in the price category of smartphones that are roughly half the price of Apple’s iPhone 5. This is the space where Samsung has demolished LG and HTC – the price bracket where you can make close to 10% operating margin and don’t have to yet compete directly against Google’s low-end partners Huawei and ZTE. With the Asha range, Nokia has shown it still knows how to sell phones at 60-90 euros. The 620 will test Nokia’s ability to connect with consumers in the 200-250 euro non-subsidized retail price bracket. This is where the long-term viability of Windows as a mass market mobile OS will be tested in the coming summer. The battle begins in February, when the 620 starts shipping. As it happens, the 620 will roll out nearly simultaneously with the new BlackBerry models. This will set up a fascinating battle for marketing support across Europe and Asia. - After Another Nokia Volume Surprise, Much Now Rides on Lumia 620 - Forbes