Russia to Have No Cheap Nokia
World major producer of mobile phones, Nokia winds up next year its Russia’s sales of low-price phones. Instead, the vendor intends to focus on more expensive models, including N-series. The market analysts think this action of Nokia quite logical, but add that it could be a bit premature and Nokia may yield to Motorola in low-price segment of Russia’s market.
Nokia terminates next year Russia’s deliveries of 1000 series (1100, 1600, 1110 that cost less than $80), a source familiar with the situation said on condition of anonymity. Instead, the dealers will be offered the 2000-series with price of between $80 and $150.
For Nokia, the emphasis on more expensive models that cost no less than $400 roots in desire to increase the marginal profit. So, at the start of the third quarter, the dealers were prompted to step up the purchase of expensive phones, including N-series. But Nokia apparently failed to attain great success in this undertaking, at least the sales of N-series weren't booming in Q3.
In Nokia, however, they insist they aren’t going to crucially change the policy in the near term and want to maintain leadership in the budget sector. According to Mobile Research Group, the budget phones account for 55 percent of Nokia sales, and the phones of 1000 series cover 32 percent.
www.kommersant.com
All the Article in Russian as of Oct. 23, 2006
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