Telefonica Chief Thinks Nokia Smartphones Are ‘Too Expensive’
Regardless if we are referring to products that are already available on the market — such as the Symbian-powered Nokia N8 or the MeeGo-powered Nokia N9 — or those which were recently unveiled — like the Lumia 800 running Windows Phone — Simon Lee-Smith, Telefonica’s European General Manager for Devices, thinks they are “too expensive”.
“If Nokia wants to sell in volume, they need to bring out devices which are cost-competitive”, he added, noting that Nokia’s premium devices are “not yet at the right price point”. When Stephen Elop was on stage at Nokia World to unveil the Lumia 800 Windows Phone, he said the device will go for approximately 420 EUR (around $584), before taxes and subsidy. “They need to be able to subsidize their high end smartphones, because they’re too expensive”, said the Telefonica exec. “All device manufacturers seem to think that a 400-plus device is the norm. Well, it isn’t. Customers and operators won’t pay that cost for a device which doesn’t differentiate sufficiently”. Do you agree that Nokia’s premium devices, like those mentioned above, are really too expensive?