Nokia slashes phone prices as market growth returns

The never ending price wars over smartphones continues with the world’s largest phone maker cutting prices across its portfolio in late January – placing its cheapest smartphone model in the same range of mid-range handsets from rivals Samsung and Sony Ericsson. With their grasp still intact on the global mobile phone market share, slashing prices is part of its normal operating business – roughly around 10 percent this time around. The Nokia 5230 has been affected by this move which makes it Nokia’s lowest priced smartphone at 120 euros; down from its usual retail price of 170 euros ($239). Even with the global recession still lingering, demand for inexpensive smartphones has helped the segment grow with sales jumping 30 percent in the October-December quarter – according to research firm Strategy Analytics. By decreasing prices, they are directly targeting their competitors like Sony Ericsson – they focus on mid-range or feature phones which usually aims on something like good cameras or music players; lacking smartphone elements. Even though the global economy is still trying to rebound, Nokia says it expects the cell phone market to grow 10 percent this year.

source: Reuters