Nokia is still
one of the largest makers of mobile phones in the world, but in the all
important smartphone and high-end handset market where profits are higher, the
company is lacking. Nokia is seeing may users migrate from its smartphones to
the iPhone and Android-based smartphones. The results for the company are low
profits and sagging stock prices.
One of the ways that Nokia hopes to tempt new
customers and keep exiting users from going to other brands is by cutting
prices. Two industry sources are saying that Nokia has cut prices of its
high-end smartphones in Europe. The sources claim direct knowledge of the
pricing and say the cuts will be around 15%. The phones that will see price
cuts are reportedly the N8, C7, and E6 devices.
Other devices may see smaller price cuts. One
source Reuters cites is at a European telecom operator and the source
said, "There are no very big cuts per model, but the scale -- across the
portfolio -- is unseen for a very, very long time."
A 15% discount is not that much to an end user and
even at the reduced price Nokia will have a hard time competing with the more
popular Android and iOS devices on the market. Nokia stock prices tumbled on
the news by 2% and Nokia insists that the cuts are "business as
Analyst Carolina Milanesi at Gartner figures Nokia
should cut prices on other handsets too. She said, "They should discount
older products including the N8, the C7 and the C6, and ship the new ones at a
very aggressive price too."
Nokia is not doing well and is looking to the
Windows Phone 7 devices coming later this year to save its failing smartphone
business. A "super-confidential" Windows Phone from Nokia was leaked late last
month giving a glimpse at what Nokia has in store.