The Z10 was launched in March and the next generation Z10 is not expected until November, the Los Angeles Times reported Saturday.
Analysts said the early withdrawal from the initial price signals sales are not doing well for the Z10, the device the company used to launch a new operating system.
The Wall Street Journal reported some retailers were dropping the price of the Z10 down as much as 75 percent. At Best Buy, the price of the Z10 sold with a two-year contract has been cut from $199 to $49, the Journal said.
A company spokesman said in a statement falling prices were a normal part of the competitive business.
"It's part of life cycle management to tier the pricing for current devices to make room for the next ones. This is just one element of our marketing strategy that will ensure we remain aggressive in a very competitive market landscape," the spokesman said.