Thanks to the enormous economic collapse of the past year, very few industries can claim to be unaffected by the decline in consumer confidence. Among the hardest hit industries have been the producers of cell phones and handset. Not only has decreased demand done a great deal of damage to these companies, but rising material costs have also presented many problems. Since the Sim free mobile phones are produced from components deriving from petroleum, increased oil prices have yielded the expected result of product costs have increased significantly throughout the year.
Over the past several months, the leader in cell phone sales has been Nokia. Nokia has recently reported a sixty-six percent decrease in profits. This stunning information also revealed that sales have dropped off by more than twenty-five percent from what it was during the same time the previous year. This is not a problem that only Nokia has experienced as its competitors such as Ericsson, Sanyo and Samsung are also experiencing very sharp declines.
The one bright spot on the books for Nokia was their sales of smart phones. According to the company, Nokia was able to expand it market share and sell more smart phones than ever. While the company expects the sales of smart phones to remain steady or even increase, they are not expecting a sudden rebound in sales of their traditional Sim free mobile phones. According to most expects, as long as the global recession continues, consumers will be willing to hold onto their old Sim free mobile phones rather than replacing them with a newer, flashier models.
Can customers expect special deals or price declines?
Due to the sharp drop off in sales, cell phone manufacturers are growing ever more desperate. The order of the day in a difficult economic environment is not market expansion, but rather simple survival. In fact, even the market leader, Nokia, abandoned plans it had to aggressively push for market expansion this year and settled on simply retaining its position as the leader of a wounded pack. While there is a price at which a Sim free mobile phone could not possibly be sold, prices will most likely continue to fall as the economic slowdown tightens its grip on the globe and product prices increase.
In an attempt to increase sales, even Nokia has been forced to cut the price of staple products like handsets. In fact, the average price of a Nokia handset was cut from $104 last year to just $88 this year. In spite of its lower price, Nokia still sold fifteen percent fewer devices this year than they did a year ago. But in a difficult economic environment, companies have no choice but to cut prices in a desperate attempt to keep sales volume stable, or nearly stable.
Makers of Sim mobile phones are also aware of the fact that the trend in mobile phone is going away from traditional cell phones and toward devices like the smartphone and Iphone that provide custom content. However, there are also know that their business still relies on sales of traditional mobile phones to keep them afloat.
From this point on, it can be difficult to predict the type of prices or deals customers can look forward to. It has become an economic reality that as long as the recession continues to unfold, mobile phone manufacturers will be required to reduce prices to deal with declining demand.
Over the past several months, the leader in cell phone sales has been Nokia. Nokia has recently reported a sixty-six percent decrease in profits. This stunning information also revealed that sales have dropped off by more than twenty-five percent from what it was during the same time the previous year. This is not a problem that only Nokia has experienced as its competitors such as Ericsson, Sanyo and Samsung are also experiencing very sharp declines.
The one bright spot on the books for Nokia was their sales of smart phones. According to the company, Nokia was able to expand it market share and sell more smart phones than ever. While the company expects the sales of smart phones to remain steady or even increase, they are not expecting a sudden rebound in sales of their traditional Sim free mobile phones. According to most expects, as long as the global recession continues, consumers will be willing to hold onto their old Sim free mobile phones rather than replacing them with a newer, flashier models.
Can customers expect special deals or price declines?
Due to the sharp drop off in sales, cell phone manufacturers are growing ever more desperate. The order of the day in a difficult economic environment is not market expansion, but rather simple survival. In fact, even the market leader, Nokia, abandoned plans it had to aggressively push for market expansion this year and settled on simply retaining its position as the leader of a wounded pack. While there is a price at which a Sim free mobile phone could not possibly be sold, prices will most likely continue to fall as the economic slowdown tightens its grip on the globe and product prices increase.
In an attempt to increase sales, even Nokia has been forced to cut the price of staple products like handsets. In fact, the average price of a Nokia handset was cut from $104 last year to just $88 this year. In spite of its lower price, Nokia still sold fifteen percent fewer devices this year than they did a year ago. But in a difficult economic environment, companies have no choice but to cut prices in a desperate attempt to keep sales volume stable, or nearly stable.
Makers of Sim mobile phones are also aware of the fact that the trend in mobile phone is going away from traditional cell phones and toward devices like the smartphone and Iphone that provide custom content. However, there are also know that their business still relies on sales of traditional mobile phones to keep them afloat.
From this point on, it can be difficult to predict the type of prices or deals customers can look forward to. It has become an economic reality that as long as the recession continues to unfold, mobile phone manufacturers will be required to reduce prices to deal with declining demand.
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