12/11/2008 10:56:00 AM
Nokia repairers could face closure after 60% price increase
A number of Nokia repairers claimed they could face closure following a 60% price rise in Nokia component parts one month ago.
There are around 180 Nokia Care Points (NCPs), with between 20 and 30 understood to have been recently put up for sale.
The price increase has squeezed the margins for refurbishing handsets. One source close to the sector said: ‘Clearly people want out. The business is nowhere near as valuable as it used to be.'
The NCPs up for sale are largely repairers with two engineers, where refurbishment revenue makes up a large proportion of the business.
It is thought that larger hubs may be better placed to weather damage to the refurbishment arm. Nokia has not given the NCPs a reason for the increase.