Nokia’s CFO Rick Simonson says pressure will be put on Motorola in 2007
By Stefan Constantinescu on Tuesday, January 30th, 2007 at 5:59 PM PST In Financial/Corporate News
At a recent investors meeting with Goldman Sachs in Boston, Nokia (NYSE: NOK)’s CFO Rick Simonson explained to the investment bank that it plans increase pressure on its closest rival, Motorola (NYSE: MOT) Inc (NYSE: MOT). The Finnish cell phone company plans to cut its entry-level phone pricing this quarter in a move aiming on stopping Motorola from narrowing the market-share gap between the two companies.Source: International Business Times
Olli was right when he said Nokia wasn’t engaged in a price war during 4Q 2006:
Nokia’s CEO, Olli-Pekka Kallasvuo, told the FT that, "Our latest results are an illustration that if there was a price war, we were not participating."
Source: The Inquirer
However the 1Q of 2007 is looking mighty different right about now. It’s fun watching these two giants fight.
(Picture was found on Nokia’s site)
As I commented earlier, price war in a sense yes, but not in the sense that Nokia would start selling phones with close to no profits. Nokia has 12-14% margins in the lowest end phones, when Moto apparentely has only 2% margins (according to an investment bank analyst recently interviewed by a Finnis online mag). Nokia can really make life for Moto miserable if those margins are true. Hahahaa!! Eat that Moto!!
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Heh heh, the CFO review article that you linked to is pretty funny btw, it says “Moto sold 220 thousand phones in 2006″ I think you mean MILLION, dude.. lol.. what an ameteur must have written it.