Nokia Agitating for a Handset Price War?
Reporting fourth-quarter earnings last week, Nokia said it expects mobile phone sales to climb 10 percent this year. To that end, the company is cutting prices on many of its handsets. And according to industry sources, Nokia is cutting them by as much as 10 percent.
Nokia (NOK) describes the price reductions as part of its normal ongoing business, though they seem far more tactical than that. By dropping prices across its portfolio, the handset maker will not only drive demand for its low-end devices, but put further margin pressure on rivals like Apple (AAPL) and Research in Motion (RIMM), which play at the more sophisticated end of the market. Could Nokia’s move force them to evaluate cost cuts of their own?
