Nokia sees iPhone's high price as advantage: shift more high-end phones at cost
Though some analysts predict doom and gloom for the likes of Nokia and Motorola, as the iPhone sucks up customers, Nokia itself seems upbeat about its prospects.
The North American mobile market, and to a similar extent the UK one, is made up from contract based phone packages where the consumer pays little or nothing for the handset, and where mobile manufacturers sign deals with service providers and offer huge discounts to ward off the competition.
Nokia believe that if consumers get used to paying $500 for an iPhone, even on contract, then they'll be happy to shell out larger amounts of cash for other mobile phones.
The N95, for example, which our survey suggests is the iPhone's strongest competitor.
Nokia CFO Rick Simonson said in a statement, “The consumer … hasn’t had a lot of choice to go out and purchase these kind of higher-end, feature-rich multimedia devices. If that can help that market grow, I think that gives us an opportunity.
The iPhone is interesting. It’s very much a validation of what we’ve been doing, in terms of saying there is a multimedia device out there that people will pay for."
Though price is a sticking point for many people when it comes to the iPhone, Nokia at least are confident that Apple could start a lucrative trend here.
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