2/25/2009 12:05:00 PM
Retailer price war over the 5800 boosts Nokia's sales figures
The Nokia 5800’s low price point has sparked a price war between retailers, which has seen the phone sold on £15 per month tariffs.
Carphone Warehouse released the phone at the lowest price of £15 per month at its launch in January, which pushed other retailers to reduce prices. Phones 4u matched the £15 price, and T-mobile and Vodafone also lowered their prices.
The £250 Sim-free price tag has allowed retailers to sell the touch-screen on low-priced tariffs.
Nokia claimed that sales of the 5800 have propelled its total phone shipments to one million within one month.
Sources said the launch of the 5800 has coincided with a spike in Nokia’s market share, seeing the manufacturer pull temporarily ahead of Samsung.
Nokia’s UK general manager, Mark Loughran, said: ‘The trick is flexibility - [with the 5800] we’ve given our partners the chance to offer the tariffs they want.’
The Nokia 5800 has also met praise from retail staff. A Carphone salesman said: ‘The value for money is great – this is the phone we’ve sold the most of in the past three weeks.’ One Phones 4u staffer agreed: ‘Ten out of the 15 phones I’ve sold this week have been the 5800.’
The device will be re-launched with Nokia’s unlimited music download service, Comes With Music. It is expected in Q2.
Customers who already have the Nokia 5800 will not be able to upgrade their handset to include the service.
Nokia said the 5800 Comes With Music was not launched at the same time as the normal device to avoid confusing the consumer. Loughran said: ‘The key to advertising is to be clear.’
Meanwhile, 3 has chosen not to stock the Nokia 5800. A 3 spokeswoman said: ‘3’s current focus is on building the UK’s biggest mobile broadband network to offer social networking, instant messaging and Skype.’