Not Another Mobile Phone Blog

With mobile handset market around the world getting fiercely competitive, Nokia has come out with a new weapon to make life hell for its competitors. Nokia has reduced the prices of its handsets by 10%. This will really make Nokia’s competitors think about their existing pricing strategy, especially in emerging markets like India and China. Nokia is facing tough competition from players like Samsung and other companies like LG and Apple are catching up. Other companies will have to seriously think through as how they are going to handle this new Nokia strategy. If these companies follow Nokia and cut down on handset prices, their margins would go down and margins going down, when demand is already going down is not a good sign. Nokia can take the impact of price cut as it is financially strong as compared to its competitors. Nokia will be cutting down on the prices of its music and media handsets like the Nokia 5310, Nokia N81 8GB and 5610.