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

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.’