Nokia cuts handset prices

Handset maker Nokia has reportedly reduced the prices on many of its music and multimedia phones by up to 10 percent. The price cuts are surprising considering the company reported strong second quarter results last month. During the second quarter, Nokia increased its market share to 40 percent, up from 38 percent in the prior year.

However, Nokia's average handset selling price continues to drop. The company attributed the decrease to higher volumes of cheaper phones being sold in emerging markets and the impact of the weak dollar. During the second quarter Nokia's ASP dropped to $117, down from $125 in the first quarter and down from $143 in the same quarter a year ago.

For more:
- see this report

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