Re: Nokia still king of the handset
 

not making a judgement, merely pointing out that nokia has had to sacrifice some of their profitability to maintain the lead (at least in aus).

It could be expected that newcomers to the market are willing to sacrifice profits to get their product "out there" and help to rapidly establish a name for themselves, but old hands like Nokia usually only do so when they think they'll be in trouble if they don't. it doesn't help investor confidence either (Ballmer and Co might like it though)
:)

Re: Nokia still king of the handset
 

Nokia don't sacrific profitability to maintain the lead. That is a hopeless point of view. They cut prices to increase profitability that would be lost with too high prices. An effect of this is that the competition must do the same, or they will also loose profitability. A big player can do this, a small player cannot, not without great losses due to less cost effective production and logistics. Everyone looses profitability, but the big ones increases their profitability in relative terms. The problem now is that Samsung is the one that gains most by this, but what else can Nokia do? Their hope is that WP will change this, so they can do both, some high profitable devices and a billion low profitable devices.

Re: Nokia still king of the handset
 

This is awesome! I have actually noticed that i have a mental ignore on ericsson's posts. Whenever i see his name my eyes instinctively skip a page.

Re: Nokia still king of the handset
 

If you cut prices without cutting costs nor increasing the quantities sold, then it WILL negatively affect your profit. DUH.

Re: Nokia still king of the handset
 

note that there is often (yet not always) a negative correlation between price and quantities sold, all other thing beeing equal.
Notwithstanding the fact that other factors might impact quantities sold.

Re: Nokia still king of the handset
 

This reminded me of back in the old day when Netscape dominated the browser market share and charged people for using its browser then Microsoft invested millions of dollars to build IE browser just to give away free.

Re: Nokia still king of the handset
 

Yup, that's why I mentioned quantity in my statement above.

Re: Nokia still king of the handset
 

nokia's symbian failed them but they STILL THEY RETAIN THE TOP SPOT..

http://www.gsmarena.com/gartner_q2_r...-news-2992.php

Re: Nokia still king of the handset
 

Still you managed to make this post :) You have to try harder than this little boy.

Re: Nokia still king of the handset
 

No one is arguing that. The point was that Nokia doesn't cut prices to "win" or "lead", they cut prices to increase profit (by hopefully increasing sales).