(1888PressRelease)
November 06, 2008 - As the mobile industry starts to feel the effects of the economic downturn with reduced sales in developed countries, Nokia has revealed seven new mobile phones with which they plan to increase their dominance in emerging markets. At the same time, however, they plan to cut almost 600 jobs from its marketing and research units.
Included in the new phone line-up is a follow up to Nokia’s 1200 model, the 1202, as well as two new models with email support. But while Nokia focuses on emerging markets, analysts keep hoping that they will turn their attention to high-end market in order to revive flagging handsets with some new and exciting developments.
With increased competition from other international vendors trying to muscle in on emerging territory, companies such as ZTE in China and Samsung are flooding the market with affordable mobile phones with email and internet capabilities and Nokia needs to keep on its toes to ensure that it stays ahead of the pack. Its already feeling the pinch, however, as its third quarter ASP was down from the second quarter: 72 Euros down from 74 Euros.
After its new phones were unveiled, Nokia shares rose by 4.6%, which goes to show how delicately poised is the market. In addition to the new phones, Nokia is also starting to branch our into internet services, including music, games and media sharing. But the profit-saving initiatives haven’t come soon enough, as Nokia announced that it will cut 450 job from its market unit, as well as 130 jobs from its research centre.
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