Nokia, currently the worlds largest cellular handset manufacturer has decided to slash their handset prices by 10%. The cuts will be made mostly on upper end, and media enabled phones, but they will also be making lower price cuts throughout the rest of their line up. Nokia currently holds a 40% Market share worldwide in the industry, but should see a definite increase in market share as they push the envelope for lower cost solutions that carriers are seeking. The possibilities of early termination fees being outlawed in the United States is looming ever closer, Nokia is positioning itself to be reactive to changes in the industry. Other handset manufacturers like Motorola have seen a decline in their profitability lately. A trend that is sure to continue in the coming months. I would be watching Nokia to increase their industry lead in the coming months.
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