Holiday Gift Guide »

Nokia’s CFO Rick Simonson says pressure will be put on Motorola in 2007

By: , IntoMobile
Tuesday, January 30th, 2007 at 5:59 PM

Simonson_rick_126
At a recent investors meeting with Goldman Sachs in Boston, Nokia’s CFO Rick Simonson explained to the investment bank that it plans increase pressure on its closest rival, Motorola 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)

About The Author

Stefan Constantinescu

Stefan Constantinescu (@WhatTheBit on Twitter) has loved technology since as far back as he can remember. It started with computers, but in the past few years his passion has turned to mobile devices. As a mobile phone enthusiast who lives and breathes devices that connect to the internet, he knows he is not alone with this radical fascination of all things wireless. He is strongly opinionated and enjoys a good debate so leave comments in his posts and he’ll get back to you! Stefan began blogging as a hobby in the fall of 2006 and joined IntoMobile in the summer of 2007. Later he got a job at Nokia in March 2008, but as of June 2009 he has rejoined the IntoMobile team. He is currently based out of Helsinki, Finland.

  • Viipottaja

    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!! ;-) )

  • Viipottaja

    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.