Nokia slashes prices, to delay new software

HELSINKI Thu Apr 22, 2010 5:47am EDT

A Nokia smartphone is shown in Barcelona December 2, 2008. REUTERS/Albert Gea

A Nokia smartphone is shown in Barcelona December 2, 2008.

Credit: Reuters/Albert Gea

HELSINKI (Reuters) - Nokia has slashed prices of its cellphones across its portfolio this week, with the deepest cuts of around 10 percent seen for some smartphone models, data seen by Reuters showed on Thursday.

Nokia is struggling to battle with new rivals Apple and Research in Motion at the high end of the cellphone market, and sees a cheaper price as its strongest weapon to hold on to market share, analysts said.

The company has also delayed the renewal of its Symbian software -- seen as crucial to improve its position in the high-end of the market -- to the second half of the year from second quarter, two sources with direct knowledge of the delay told Reuters.

Rumors of the possible delay have made the rounds for days and analysts see this hurting Nokia's outlook for the second quarter.

A Nokia spokesman declined to comment on price cuts and software delay ahead of January-March earnings due at 1000 GMT.

Nokia has previously said price changes are part of its normal, ongoing business. The world's top cellphone maker usually cuts prices across its portfolio a few times each year. The deepest price cuts were seen in some of Nokia's E-series models as the firm makes room in its portfolio for new, cheaper models to roll out in coming months.

(Reporting by Tarmo Virki; Editing by Mike Nesbit)

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Comments (3)
CathieT wrote:
But how much of that price reduction will actually get to the consumers. I think the retailers will suck it all up.

Apr 22, 2010 8:56am EDT  --  Report as abuse
compsci wrote:
>>> CathieT – they can’t suck it ALL up… There’s too much competition in the market for them to do that. Most people already have a phone, and are getting wise to the “Free phone” gambit from the service-providers… My next phone will be bought outright from the manufacturer, with no service-provider lock-in. If it’s too expensive from my service-provider, I’ll get it online directly from a mail-order supplier.

Apr 22, 2010 4:08pm EDT  --  Report as abuse
hyuipo wrote:
compsci but at the same time you must realize that even if some of it reaches its buyers how much of it is going to be left I mean is it really worth all the for a few dollars less I mean really its more of a waiting game to see how it plays out because it really can go either way this time.

Apr 23, 2010 8:01am EDT  --  Report as abuse
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