Nokia's new phones 'too expensive', and they're not alone

Nokia's new phones 'too expensive', and they're not aloneIt's been a long hard year for Nokia, but fans of the Finns are no doubt still basking in the warm glow of the recent Windows Phone Lumia launch, and looking forward to better fortunes in the future.

Only thing is, not everyone is convinced. Simon Lee-Smith, European general manager for devices at Telefonica (the parent company of O2) says Nokia's new phones are too expensive.

Lee-Smith was giving his thoughts to Telecoms.com, and said that while all the talk was of Nokia injecting some much-needed mass-market appeal to the Windows Phone OS, he felt the first two handsets – the Lumia 710 and Lumia 800 – were “not yet at the right price point”.

And it's not just Nokia that's guilty, either. Lee-Smith feels device manufacturers in general over-estimate the price point consumers are willing to pay for their devices. “All device manufacturers seem to think that a €400-plus device is the norm,” he said. “Well, it isn’t. Customers and operators won’t pay that cost for a device which doesn’t differentiate sufficiently.”

Of course, there's an element of 'well he would say that, wouldn't he' about this. Ask for most manufacturers' opinions and they'll tell you consumers expect an unreasonable amount for their money.

We do have to mention that it's ironic to hear an exec from one of the continent's leading carriers moaning about phone RRPs when their own bread and butter comes from putting a price tag on the completely non-existent substance that is mobile airtime and data.

Read more about: Windows Phone

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3 comments

equ  Nov. 7, 2011 at 19:56

I agree with Lee-Smith in that £400ish pricepoint is too much to be mid-range, so it's up against Hi-end phones like the Iphone and Samsung Galaxy's. Im normaly Nokia fan but just would not touch it at that price.

If the WM manufaturers were more realistic and were hitting the midrange (£200ish price point) then would be only up against the midrange Android phones as Apple has no phone at that price point.

With hardware prices falling and the "other side(s)" getting better they simply are not moving fast enouth to close the gap. (IMHO)

JanSt / MOD  Nov. 7, 2011 at 19:59

Well said! They overcharge sms by what? 12,000% or thereabouts, and then make a fuss about giving us a few free ones! Also: Nokia priced the E6 rather competitively, and BBs aside the qwerty bar type market is hardly overcrowded, yet most networks shunned the E6. Not to serve their customers, but to show Nokia the finger.

In the upper half of their smartphone range Vodafone Ireland currently have 3 handsets that aren't Android. Plus the iPhone. Choice? They sell the SE Play at full launch price? Why - to serve customers' interests? Okay, I'm unfair - O2 Ireland's prices are slightly better. But still.
The networks sit in a very fragile glasshouse. They shouldn't play with stones.

Though, yeah, seeing the Nokia Lumia 800 on Expansys for €710 gave me a good chuckle. You can buy a SE Xperia Arc AND an X7 for that!!!

Stelph  Nov. 8, 2011 at 09:34

Most smartphones are overpriced, when a tablet is essentially a smartphone but with a much bigger screen (which is obviously more expensive) but costs the equivalent or less than a smartphone youve got to know somethings wrong.

For example of products coming out of the same company:
iPhone 4s 16GB £499 - iPad 16GB £399
Xoom 2 £379 - Moto Razr £379
And of course theres the Amazon Kindle Fire and B&N Nook colour which hugely undercut most Android phones.

Whats happened to ZTE and their kickass budget phones like the ZTE Blade, was hoping theyd have a budget dual core out by now :(

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