No, the point isn't silly at all. Nokia's average selling price for phones has been dropping all the time and it's a major problem for them. You get a lot more profit from selling the more expensive phones. The N900 doesn't exactly cost 600 euros to manufacture. R&D costs exist for both cheap and expensive phones. Sony Ericssson's CEO has, for example, said that they won't go into the cheap phones anymore since the margins are so small that they couldn't be able to produce them at prices that compete with Nokia, and still make money. This means that Nokia is not exactly raking in money from cheap phones. The expensive phones are where the money is -- and if a phone's selling price is 300 euros, they probably make much more profit on it than they do by selling three 100 euro phones.

The average price of a Nokia phone sold today is down to 62 €. The average price of a Nokia smartphone is now down to 155 €. (http://www.ft.com/cms/s/0/1f67240c-4...44feab49a.html )

These numbers are falling all the time. I won't look up links for this, google it yourself, but the amount of PROFIT Apple makes per iphone is somewhere between 300 - 600 dollars per phone, I seem to recall. This is where Nokia wants to be. So if the magic fairy makes Nokia's 150 € smartphones for free, they only need to sell 2 to get the profit Apple is making.

It's not a silly point. I may have worded it in a not too good manner, but the point is valid: the cheap phone market is Nokia's since not too many of these major companies want to be there at all.