It’s been only three months since AT&T released Nokia’s latest and greatest Windows Phone 7 device, the Lumia 900. The handset originally sold for $99.99 on a two-year contract, a very affordable price point for a supposedly high-end phone.

Well, guess what – Nokia has officially cut the price of the Lumia 900 in half, or $49.99 on the same two-year deal. There are now four flavors to choose from, as Nokia announced last week the introduction of a pink Lumia 900 variant.

Previously, the device was available in three colors – black, cyan and white.

So what’s the deal with the price reduction?

This is something neither Nokia nor AT&T may want to admit, but lackluster sales (as compared to other smartphones) may be the reason behind it. Sure, the Lumia 900 may have sold well by Windows Phone standards, but compared to the likes of the Samsung Galaxy series and the Apple iPhone, the device hasn’t sold peanuts. That doesn’t make it a bad phone, though, as the Lumia 900 did win the Best in Show award at CES 2012, and has earned mostly positive reviews from users.

There are those, however, who believe the Lumia 900 may not be worth it, even at $50. The handset, like other Windows Phone 7 devices, will not be eligible to upgrade to Windows Phone 8.

Instead, Windows Phone 7 users will have to settle with Windows Phone 7.8. This update includes the Windows Phone 8 start screen and a few other features – think of it as “Windows Phone 8 Lite”, with only a small percentage of the newer OS’ functionalities.