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Nokia Drops Prices, Pressures Field

By Staff Author | August 1, 2008

Nokia last month cut prices on some of its high-end music phones to tighten the pressure on rivals, especially Sony Ericsson, according to a Reuters report.

Nokia did not comment, but with 41% global market share, the Finnish handset maker dwarfs all competitors.  The most recent data puts Samsung at 15.3% and Motorola at 9.4% , with LG nipping at Motorola’s heels at 9.3%.

Market share for Sony Ericsson is down to 8.2% and that company announced layoffs, so Nokia may be looking to squeeze further.  It’s unknown if Nokia has intentions to start an industry price war, or reduce the Sony division’s value for a possible acquisition, or just continue gaining market share for itself.

Meanwhile, compared to Samsung and LG which have high margins, Motorola is the least able to cut prices.  However, the company yesterday announced better-than-expected quarterly results.

Despite being for sale since March, Motorola is not yet saying who might acquire its cell phone division.  Names mentioned have included everyone from Google to Indian consumer electronics company Videocon Industries.


Filed Under: Carriers

 

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