Nokia has predicted that the mobile phone market segment will see lower profits for all parties in 2009, due to the current worldwide economic crisis. It believes mobile phone companies will experience the first dip in their sales figures in eight years.
At the same time, however, Nokia thinks it will fare better than many of its competitors, especially those who own a significantly smaller market share than theirs. Basically, Nokia sees the economic downturn as a bad thing for everyone, but it knows it won’t be as bad for them as it is for their competitors.
CEO Olli-Pekka Kallasvuo told the Financial Times in an interview that Nokia will focus on profit development amid a falling cellphone market in which many competitors are cutting prices. It seems Nokia is still perfectly confident in their old way of doing business, wherein they won’t reduce prices despite having competitors offering phone bargains everywhere.
Additionally, Kallasvuo brought up the fact that their current status as the mobile phone industry’s juggernaut should at least provide them with a bit more armor than its lesser market share owning rivals.
“When times are tougher, people who have stronger positions fare relatively better than the competition . . . So, overall, I believe many of our competitors will have limitations here in terms of their ability to do things.”
A bit cocky, but completely rational. So there we have confirmation that we won’t necessarily see any price reductions on any of Nokia’s upcoming phones for 2009. I guess you’ll just have to cross your fingers for handsets that are worth their list prices and then some, though.
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