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9/4/2008 11:24:44 AM

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Nokia not buckling over prices: ‘Samsung share strategy unsustainable’

Nokia not buckling over prices: ‘Samsung share strategy unsustainable’ - Mobile news

MD Simon Ainslie defends manufacturer's handset prices

Nokia UK MD Simon Ainslie has defended the manufacturer’s handset prices, despite losing market share to rivals.

Nokia has seen Samsung and Sony Ericsson come within 3% to 5% of its grip of the number one position in the UK market in recent months.

Ainslie said: ‘Samsung and Sony Ericsson have been aggressively pricing their products to get share. But you can’t sustain a business with that; Motorola did that a few years ago and they have suffered as a result.’

Both Samsung and Sony Ericsson have targeted Nokia’s prepay heartland with cheap handsets as well as mid-range devices.

Some operators have started diluting the number of Nokias in their prepay range, particularly Orange, but the operator has said there is no long-term strategy behind it and that its relationship with Nokia is strong.

Ainslie added: ‘Networks want to buy handsets as low as possible. Clearly we see an investment that reflects the value of our products, services and brand.’


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