Two industry sources recently revealed that Nokia has cut the prices of its smartphones in Europe for slowing down the decline in its share of the higher end of the market.
The steepest cuts of around 15 percent were made on prices for the company’s flagship model, the N8, the multimedia phone C7, as well as the business user-targeted E6.
Other price cuts were smaller, both sources said. “There are no very big cuts per model, but the scale — across the portfolio — is unseen for a very, very long time,” said one of the sources, who works at a European telecoms operator.
Shares in Nokia dropped sharply on the news and were 2 percent lower at 4.35 euros by 1256 GMT.
A Nokia spokesman declined to comment on specific prices and said changes were part of its normal business.
“It’s business as usual,” he said.
Analyst Carolina Milanesi from Gartner said the price cuts were not too surprising as Nokia has indicated that it would be more aggressive on pricing to keep users from defecting.
Nokia is expected to report losses for the second and third quarters this year as its ageing smartphone range is rapidly losing market share to phones running on the Android operating platform of Google.