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Posts: 207 | Thanked: 552 times | Joined on Jul 2011
#24
Originally Posted by specc View Post
The main point is that every WP phone sold, is one less Android/iOS sold. I said the same thing half a year ago, the Lumias must be priced much cheaper if they are to be competitive. They have no real advantage other than being different, and that is not enough to compete when the price is equal. Nokia should focus on the ecosystem, not the profit margins of HW. It's a war of ecosystems, so fight the war!!
NOKIA's gross margin on smart devices last quarter was 1.7%. ONE POINT SEVEN PER CENT!

The slashing of the price of the 800 is not a promotion or a calculated marketing strategy it is an admission they are redundant stock and NOKIA will take any sum, no matter how piffling, to try and turn them back into cash. NOKIA desperately needs cash. What do you think NOKIA's gross margin will be this quarter, now they are having to sell their WPx devices at LESS THAN COST?

This it is yet another manifestation of the gross incompetence at NOKIA's helm.

You do get the basic concept that businesses exist to make a profit, right?

Why on earth should NOKIA focus on the 'ecosystem' not the margins on their hardware when Elop has already handed over NOKIA's 'ecosystem' lock, stock and barrel to Microsoft? How the feck are NOKIA going to make a profit out of that?

Samsung are just about to announce record profits, do you think that came from their 'ecosystem' or their hardware?

Does Apple give their hardware away at cost?