Apple Inc. store in London is buzzing because of the scuttle of the sales assistants between two floors. Nokia Oyj’s failure in an UK flagship outlet is obscured in black plastic which is located on Regent Street’s opposite side.
Federico Crosato, 24-year-old student in London said that he’ll pay more for Apple when compared to Nokia. He also said that he needs a phone that is fast, flexible and that doesn’t crash.
Since Nokia failed to develop a device similar to the iPhone or their research in the Blackberry they have slashed the prices of their phones and have sacrificed the profits for it. Smartphone’s price is reduced to 18% in 9 months because consumers are not willing to pay a high price for it.
Carolina Milanesi, U.K.-based analyst said that nowadays BMW or Mercedes-Benz doesn’t come to her mind when she thinks of Nokia. She also says that Ford comes to her mind because of its reliability and low price.
It means that Nokia handsets will not get the premium prices. The charge of the Samrtphone is 155 euros in the 1st quarter which is low when compared to the third quarter. Apple has earned $622 for an iPhone in the 2nd quarter including the products and services.
The prices will continue to decline until Nokia gets a high-end platform that gives a whole new experience to the users. The price erosion continues if they continue with the current models. Apart from Nokia, Motorola Inc. also suffers from iPhone’s ascent. Motorola’s new handsets didn’t go well and the company saw loss in the first quarter.
Sony Ericson is finding it difficult to maintain its place in the top 5 mobile phone makers because their rivals are producing mass-market products that has software similar to iPhone. So the company is producing touchscreens with the Android software from Google.
