According to Sebastian Anthony:
The Lumia 900 isn’t targeting iPhone or Galaxy users; it’s targeting the 41% of the US public who still own a feature phone. If you’re already firmly set on getting an iPhone, the Lumia won’t stop you — but for walk-in customers, the $200 price difference is really quite significant. For customers on the fence — if saving $200 isn’t enough — the Lumia has a bigger screen than the iPhone and a better camera than most Android phones — two factors that could easily sway people towards the Nokia device.
I can agree with the reasoning behind this claim, but the conclusion doesn’t seem to line up. If you have 2% marketshare, you are going to do everything you can to shave away at the vertical you are currently in. Smartphones are fundamentally different than feature-phones, and feature-phone owners probably both a) realize this and b) don’t care. It is a lifestyle choice to move to a smartphone still. Eventually, this won’t be the case because of cheaper components, etc. But for now, the world still believes in feature phones.