Nokia has cut the prices of its smart phones in Europe in an attempt to work on its declining market share. One source, close to the company commented that Nokia is looking into prices cuts of around 15 percent. This is applicable to the company?s flagship model, N8, C7 and E6.
However it is learnt that price cuts on the other Nokia models are smaller.? “There are no very big cuts per model, but the scale – across the portfolio – is unseen for a very, very long time,” said one of the sources, who work at a European telecoms operator. Shares in Nokia dropped sharply on the news and were 2% lower at 4.35 by 1256 GMT. A Nokia spokesman declined to comment on specific prices and said changes were part of its normal business. “It’s business as usual,” he said.
These price cuts however have not surprised the market; as Nokia has indicated that it would be more aggressive on pricing to keep users from defecting. Nokia’s share of the smart phone market fell to 25.5 percent in the first quarter from 39 percent a year earlier, according to research firm Gartner, and many analysts expect the share to fall further during 2011.
Sources: Economic Times; REUTERS