Be prepared to get cheaper devices from Nokia soon. Thats in the second quarter of the year, in some markets it has actually started selling in the new prices. If you are an Ebay shopper you will find price cuts as much as $200 for the main smartphones Nokia E7 and Nokia N8.
Something to look forward to, right? Lucky you if you had correct timing to gain from this. Nokia attributes these price cuts due to unprecedented factors negatively impacting Nokia’s Devices & Services business to a greater extent than previously expected. Here are some of the factors:
– the competitive dynamics and market trends across multiple price categories, particularly in China and Europe;
– a product mix shift towards devices with lower average selling prices and lower gross margins; and
– pricing tactics by Nokia and certain competitors.
Updated outlook for Devices & Services for the full year 2011:
– Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011. However, Nokia expects to continue to provide short-term quarterly forecasts in its interim reports as well as annual targets when circumstances allow it to do so.
– Nokia’s previous targets for the third quarter, fourth quarter, and full year 2011 were: 1) Net sales in Devices & Services to be at approximately the same level in the third quarter 2011 as in the second quarter 2011, and seasonally higher in the fourth quarter 2011, compared to the third quarter 2011; 2) Devices & Services non-IFRS operating margin to be between 6% and 9% in 2011. These targets are no longer valid.
And this has nothing to do with the Nokia Windows phone, which Nokia says will be shipping in the fourth quarter of the year, i guess after Mango is fully tested and themed for Nokia, sort of like a christmas gift. I wonder what will cover the gap between the release of X7 and E6 nokia phones which is predicted to happen this month, or even if they will come at a low price.
