Report: Nokia shaves prices on handsets

Nokia reduced the price on phones across its handset portfolio in late January, according to Reuters, citing industry sources who said the world's largest handset maker cut prices by as much as 10 percent. The effort brings the company's handset pricing more in-line with offerings from Nokia rivals, such as Samsung and Sony Ericsson.

Nokia spokesman Joseph Gallo told FierceWireless that "price adjustments are a normal part of our business" and that any recent changes to prices across the portfolio are not out of the norm. Beyond that, he said, the company does not comment on pricing for specific models.

Nokia reported strong earnings for the fourth quarter, with shipments of 126.9 million units up 12 percent from the year-ago quarter and up 17 percent sequentially. The company also made strides in the smartphone market--its global market share shot up to 40 percent in the period, an upswing of the 35 percent it reported in the third quarter. Nokia shipped 20.8 million smartphone units in the fourth quarter of 2009, up from 15.1 million in the fourth quarter of 2008.

The drop in Nokia's handset prices could help spur sales of high-end smartphones, but also might hurt margins on mid-tier and low-end devices.

Last week, Nokia reiterated expectations of 10 percent growth this year over last year in the overall handset market, though it said it expects its share of the market to remain flat.

For more:
- see this Reuters article

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