Nokia not worried about cheap Motorola's
Mar 02 2005 - 04:04 PM ET | Motorola, Nokia
Nokia is not concerned
with Motorola's plan
to produce low-cost mobile phones for emerging markets. Currently Nokia is the market leader in low-cost phones:
bq. "We're going to continue to bother with the low-end and we're going to continue to do well," said Simonson, noting that 20 percent of Nokia's profit from mobile phones comes from models priced at 100 euros or less.
Motorola will launch a $40 mobile phone (30 euros) in April and has plans to ship a $30 model next year. The average profit margin for mobile phones is 10%. Nokia's cheapest phones sell for around $50.
to launch 40 mobile phones this year (6 have already been announced), including the possibility of a phone with a hard drive. Many of the upcoming models are expected to be flip phones, a major sore point Nokia's current line up.