Nokia has cut the cost of its handsets, including its flagship phone the N8 and recently released business-centric device the E6.
The price cuts will be biggest – up to 15% – for the high-end smartphones Nokia N8, C7 and E6, with other phones set for smaller price cuts.
By way of a quick reminder of these three Nokia devices, the N8, which was recently launched in a pink version, is renowned for its high-end snapper: a 12-megapixel camera with Carl Zeiss lens and Xenon flash together with HD video recording capabilities. The N8 has to be a contender if you’re contemplating which camera phone to buy – especially with a price cut thrown in for good measure.
The Nokia C7 is a multimedia phone with features including an 8-megapixel camera, customisable home screens and AMOLED display.
The Nokia E6 only arrived in the UK last month, and sports a 2.46 inch display and full QWERTY keyboard to support both its business and entertainment features.
Although Nokia states this manoeuvre to cut prices by up to 15% is a standard part of business, the company has been experiencing a loss of market share to rivals. Nokia’s share price has dropped by 40% this year and its share of the smartphone market fell to 25.5% in Q1.
And the mobile phone manufacturer has not used the strategy of cutting prices once a quarter for a number of quarters, choosing instead to slash prices on a model by model basis, Reuters reports.
“There are no very big cuts per model, but the scale — across the portfolio — has not been seen for a very, very long time,” said one of Reuters’ sources, who works at a European telecoms operator.
This price cut could increase the likelihood of a price war in the mobile phone market. Analyst Neil Mawston of Strategy Analytics said: “Consumers and operators would benefit from cheaper smartphones in a price war, but vendors with weak profit margins could get squeezed.”
Source: Reuters
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