Telecommunications Industry News
Nokia Rises Above Handset Price War, Expects Market Share to Decline
5:45 am on September 15, 2008 | Category: Cell Phones, Mobile Devices
Finnish handset giant, Nokia, which currently holds an impressive 40% of the global mobile phone market, expects its market share to decline this quarter, due to a tactical decision not to match aggressive pricing by some of its competitors.
“Nokia’s strategy is to take market share only when the company believes it to be sustainably profitable in the long term,” the company said in a statement on Friday.
“Nokia decided it’s not worth going for market share, in order to protect its profit margins,” commented Avian Securities analyst, Matt Thornton. “They don’t want to go down that path of destruction.”
Industry experts believe that Samsung and LG Electronics, as well as discount Chinese cell phone makers, ZTE, Lenovo Group, and Huawei Technologies, are rivaling one another in a price war for dominance of the low-end handset market.
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Published by TeleClick Enterprises
Edited by Jeremy Maddock
