Nokia Oyj has slashed Nokia Lumia 900 US price in half. The company had launched the device three months ago at $ 99 at AT&T stores in US market in April. The company said that the move is aimed at “allowing a broader consumer base to buy this flagship device at a more accessible price."

The cost of the Lumia 900 Windows phone has been reduced to $49.99 from $99 with a two-year agreement, Nokia spokesman Keith Nowak said on Sunday.

The spokesman also said a price cut is not unusual at this time in a smartphone's life cycle, noting that Samsung has cut the price for its Galaxy S II, launched before the Lumia 900, according to Reuters.

Featuring a 4.3-inch screen, 1.4 gigahertz processor and 8-megapixel camera, the Lumia 900 uses largely untried software from Microsoft Corp.

Nokia Chief Executive Stephen Elop last month announced further downsizing moves, including 10,000 job reductions and a streamlining of research and development efforts.

"This move is a normal strategy that is put in place during the life cycle of most phones," Nokia spokesman Doug Dawson said in an email. It "allows a broader consumer base to buy this flagship device at a more accessible price."

According to Wall Stree Journal, Nokia's Lumia phones took a hit a few weeks ago when it became apparent that current versions of the phone wouldn't be eligible for an upgrade to Microsoft Corp.'s MSFT +2.65% new Windows 8 software later this year. Nokia has said the Lumia phones will, however, get significant upgrades even if Windows 8 upgrades won't be available.