In a bid to make GSM cellular handsets more affordable, Nokia has drastically reduced prices of its handsets in India.
The price cut was by and large across the board barring a few models. The maximum cut was in the high-end handsets while the entry-level prices also eased to some extent.
For instance, the dealer transfer price of GPRS-enabled 6100 model with tri-band is now at Rs 14,905 as against Rs 19,355 earlier, a reduction of over 22 per cent.
The price of the 7250 model, with its in-built camera, is down from Rs 22,720 to Rs 20,795, a 9 per cent cut, and that of the 3650 model, with a camcorder, had also been cut.
The price of entry-level sets such as 3315 and 3610 have also been reduced, but not to the extent as in the case of expensive sets.
Other models where prices were brought down include 3530, 6610.
Industry observers felt that the reduction in prices was in line with the international trend. Pankaj Mahindroo, president, Indian Cellular Association, said, "India is a small market, accounting for only 2 per cent of global GSM handsets market. All leading manufacturers sold 4.4 million sets in 2002 in India and this will go up to 9 million in 2003. Thus the reduction in handset prices is driven by international dynamics."
Repeated attempts to contact the top brass of Nokia India for their comments failed.
GSM service providers felt that there could be further cuts in future. "There is pricing pressure on GSM manufacturers as the market is stagnating in developed countries and the only growth is expected to come from the Asian countries." According to service providers, the standard for going mobile would also upgrade to GPRS-enabled phones.
Incidentally, in the second quarter ended June 2003, Nokia's worldwide sales in mobile phones was to the tune of euro 5,513 million as compared to euro 5,398 million, an increase of 2 per cent.
The company's net profit on sales (across segments) dipped dramatically by 28 per cent from euro 905 million in the second quarter ended June 2002 to euro 664 million. Asia Pacific accounted for 23 per cent of Nokia's sales and India happened to be the second among the Asia Pacific countries for Nokia, followed by China.
