Nokia Slashed Price up to 10%
Being successful in mobile phone industries, all you have to do is taking an action. This is what happens to Nokia, cutting prices for many of its handsets in July. As said by a European telecom industry source, Nokia which controls 40 percent of the mobile phone market has made the steepest price cutting of up to 10 percent for selected music and media phones, while it made smaller cuts across the portfolio.
The sharpest cutting was in the average retail price of the 5310 and 5610 music phones and the multimedia N81 8GB as it is showed by Nokia’s market data in Finland. On the news, Nokia’s shares have fell and were 2.2 percent lower at 17.39 euros by 1321 GMT, underperforming the 1.8 percent weaker DJ Stoxx European technology index (SX8P). It will put pressure for Nokia’s rivals (as said by David Hallden, an analyst at Cheuvreux) such as Sony Ericsson which almost made no money in the April-June quarter and for the reason of that they have to cut their 2000 employees.
Just like Sony Ericsson, Motorola as the third-largest phone marker also made its losses after Razr didn’t attract buyers. However, Motorola could still get profit next year unless they can cut the cost and refresh its model range, as it explained by Neil Mawston, an analyst with Strategy Analytics.
So far, as explained by research firms Strategy Analytics and CCS Insight, by surging demand in emerging marketplaces as much as 41 percent had been increased by Nokia in market share in the second quarter.
Via: Symbianfreak
Tags: News
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