Nokia CEO: Market will grow up to 10% this year, average phone price will drop
By Stefan Constantinescu on Tuesday, February 20th, 2007 at 11:10 PM PST In Financial/Corporate News
Considering the BBC just said that 85% of all new cellular phone subscribers are from developing countries then I would say Olli is spot on.
Ultra brief article on Forbes:
Nokia (NYSE: NOK)’s chief executive Olli-Pekka Kallasvuo has predicted that mobile phone prices will continue to drop this year, giving his company a competitive advantage, the Welt am Sonntag reported.‘This year the market will expand by up to 10 pct, and the average cost for a cellular phone will drop,’ Kallasvuo said in an interview with the newspaper.
‘Nobody can produce cellphones at the same low costs that we can and we can use our position as the market leader to our best advantage,’ he said.
Yep, one of my favorite quotes (problemn being I can recall who exactly it was) is from a London analyst who said Nokia has 14% margin in its current super-low end phones (1100 series etc.) compared to e.g. Motorola’s 2-4%!!! Nokia really is wiping the floor with everybody else in the low end market when it comes to profitability.