Price cuts/new models aid Nokia fight-back

1 Jun 2004

Sales of Nokia handsets in Europe have risen sharply in recent weeks, indicating that the company’s decision in April to cut some handset prices by up to 25%, coupled with the introduction of new models, has reversed its decline in fortunes. The Finnish manufacturer has been losing global market share to rivals such as Samsung, Sony Ericsson and Siemens – which have been supplying cheaper budget units – and has also lost ground due to its lack of colour-screen camera phone products in the intensely competitive mid-price range bracket. However, retailers report that Nokia’s sales have rebounded with some Nokia models becoming the number one seller in certain key segments. According to figures from leading European retailer Carphone Warehouse, over the course of the last month the Nokia 1100 model has ousted Siemens’ from the top dog position in the keenly contested entry-level phone market.