Saturday, October 08, 2005

Nokia image down and volume up

Alyce Lomax at The Motley Fool wrote about Nokia sending mixed signals to the markets. On the other hand, Nokia seems to be doing exceptionally well with their latest push to the emerging markets. Nokia’s strategy on these markets seems to be to churn out cheap phones that will grab market share.

Don’t you think it’s funny, how the price of this emerging markets general phone model seems to be hovering around 100 euro? On Finnish markets, where we have no operator subsidised cheap mobile phones, you can fetch basic phone models under 30 euro and we are talking about new phones, not second hand. So we are really talking about a phone that has excellent margins.

On the downside are the recent delays with new phone models. Nokia hasn’t been able to deliver some high-end models to the Christmas market. Nokia is loosing on the image and gaining on the volume. Read more over here.


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