Troubled smartphone-maker Nokia's new Lumia 920 handset is being priced up to 25 percent higher than the rival Samsung Galaxy S3, risking a consumer backlash that could endanger its attempt to restore its fortunes.
Analysts said Nokia will struggle to explain the premium on the Lumia, seen as potentially its last chance to break into the lucrative smartphone segment and catch Apple's iPhone and a string of other popular phones like the fast-selling Galaxy.
The Lumia, which with its rounded edges and colourful covers look similar to its predecessors, was unveiled earlier this month and drew a thumbs down from many analysts who said it lacked the wow factor to challenge its rivals.
It uses Microsoft's Windows Phone 8 software while Samsung Electronics' Galaxy S3 operates on Google's Android system, the platform favoured by many smartphone makers.
Windows Phone is still largely an unknown to consumers - they would probably expect to pay less if they are taking a risk, said Ovum analyst Nick Dillon.
Hardware-wise they are pretty similar, it would be hard for Nokia to justify that extra cost to consumers.
Windows Phone has just around 3 percent of the global smartphone market, while the Android platform controls two-thirds of sales. Apple has around a quarter.
Nokia said Swedish carriers would sell the Lumia 920 for around 5,700 Swedish crowns ($860), excluding subsidies. This compares with 4,515 crowns asked for a Galaxy S3 at Expansys, one of the leading online phone stores in Europe.
In Italy, the Lumia 920 will sell for 599 euros ($770), compared with 530 euros for the S3, which has been on the market for four months.
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