Nokia Triggers Price War In The Handset Sector With 10 % Reduction
The leading Mobile Company, Nokia is all set to give its competitors a tough fight. The company has taken a clever move by slashing its handset prices by 10%.
The rivals which include the names of Sony Ericson, Motorola, Samsung and LG are left with only two choices. Either they can follow Nokia and slash off the costs of their hand sets too, or they keep marketing their cell phones at the same prices.
However, both the options would prove heavy to the competitors, as if they choose to slash the prices down, then they would be caught in a situation where manufacturers would see a slowdown in demand and margins will also be hit. If they choose to stick to the present prices, then it may result in losing the market shares.
Nokia on the other hand is currently enjoying the new development. If the company's financial position is taken under consideration, then it is quite strong as compared to the other companies. This move would also benefit the company in US and European markets.
Nokia has decided to slash the prices of specific music and media handsets by 10%. A small reduction would also be seen in the price in portfolio like multimedia N81 which has somewhat similar features as that of Apple iPhone 3G. 5310, 5610 and N81 are other sets of the company which will see a drop in prices. All these sets are multimedia, music-focused phones.