Finnish cell phone maker Nokia cut prices for many of its handsets in July, putting further pressure on its rivals' already thin profits. Nokia made the steepest price reductions of up to 10 percent for selected music and media phones, while it made smaller cuts across the portfolio.
The sharpest falls were in the average retail price of the 5310 and 5610 music phones and the multimedia N81 8GB. The price cuts follow Nokia's launch of its Supernova phone range - aggressively priced products with integrated music players, challenging Sony Ericsson's Walkman portfolio.
Manufacturers are facing an increasingly intense battle for market share as demand for pricey phones has started to slow in the U.S. and Europe, where economies are under pressure from the global credit crunch.
The price cuts from Nokia, which controls 40 percent of the cell phone market, will put further pressure on its smaller rivals like Sony Ericsson, which has focused on music and camera phones. Sony Ericsson made practically no money in the April-June quarter, and said it would cut 2,000 jobs as it forecast the remainder of 2008 would also be tough.
Struggling Motorola has made losses since its flagship RAZR phone lost appeal among consumers. Nokia increased its market share to 41 percent in the second quarter, helped by surging demand in emerging markets.
Source : http://www.mobiledia.com
The sharpest falls were in the average retail price of the 5310 and 5610 music phones and the multimedia N81 8GB. The price cuts follow Nokia's launch of its Supernova phone range - aggressively priced products with integrated music players, challenging Sony Ericsson's Walkman portfolio.Manufacturers are facing an increasingly intense battle for market share as demand for pricey phones has started to slow in the U.S. and Europe, where economies are under pressure from the global credit crunch.
The price cuts from Nokia, which controls 40 percent of the cell phone market, will put further pressure on its smaller rivals like Sony Ericsson, which has focused on music and camera phones. Sony Ericsson made practically no money in the April-June quarter, and said it would cut 2,000 jobs as it forecast the remainder of 2008 would also be tough.
Struggling Motorola has made losses since its flagship RAZR phone lost appeal among consumers. Nokia increased its market share to 41 percent in the second quarter, helped by surging demand in emerging markets.
Source : http://www.mobiledia.com
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