Bad Day for Nokia
Some days it is tough to be the big guy.
Nokia has reported two bits of bad news. The first was that it was predicting a weaker than expected Q3. This loss of revenues is due to price squeezing from its low-end competitors. Nokia has decided to take the high road, literally. They don’t plan to reduce prices to compete.
The second bit of bad news comes from Nokia’s high end market. O2 has decided not to offer Nokia’s latest smartphone, the N96, to their customers. O2’s problem is that they don’t want to divert their money from their subsidy deal with Apple for the iPhone. O2 is way more concerned about keeping Apple happy by hitting their sales targets than working with Nokia on its latest me-too product.
Nokia has problems on the high and low ends. The real question is how long can they survive in the middle.