11/5/2008 12:06:00 PM
Nokia causes concern with 62% raise in component prices
Nokia delivered a blow to repairers last week by increasing the price of component parts by 62%.
The price increase has raised concerns about the future of repair centres, with many threatening that the hike will result in counterfeit parts entering the UK market.
One repair industry source said: ‘This is Nokia’s way of saying no more refurbishment … but refurbishment is part of the market. They are shooting themselves in the foot on this.’
Nokia Care Points (NCPs) are expected to be hit hard by the huge raise in the price of parts. NCPs claimed they were not told why the changes would take place and were informed several weeks ago by email.
Nokia has built up a sophisticated repair network, supporting service centres with an opportunity to win official status to fix phones.
The NCPs source said: ‘The cost of the normal repairs will go up significantly, which is going to force a lot of service centres to close.’ Many NCPs supplement income with refurbishment due to a low profit margin in handset repairs.
One repair industry source suggested: ‘It’s all about driving numbers up for new handset revenue.’
Nokia wasn’t able to comment as Mobile went to press.