Nokia has slashed prices of its older smartphone models after investors gave its latest Lumia phones a rapid thumbs-down.
The Finnish group, which is struggling to recoup ground lost to its rivals, cut the price of its mid-range Lumia 800 Windows Phone by around 15 percent this week and made smaller reductions on other Windows models, sources said.
Nokia shares continued falling on Thursday after slumping 13 percent on Wednesday as the firm unveiled two new Windows Phone 8 models in what may be the last major shot at reclaiming market share lost to Apple, Samsung and Google.
Nokia did not disclose the price or roll-out dates of the new models. Shares fell a further 4.6 percent to 1.9 euros on Thursday.
Research firm CCS Insight, which tracks market prices, confirmed the cuts and said they were necessary to keep momentum behind current Lumia 800 and 900 devices.
The company did not officially disclose the price cuts of the older phones but said such steps were a normal part of its business.
The lower prices will hurt Nokia's bottom line, particularly in September and October as analysts expect the new models to begin contributing to results only the following month.
Analysts said the new models would probably reach the market by November at the earliest, with the high-end 920 model - which featured a high-quality camera and touch screen that can be used with gloves - likely to sell for a price similar to Apple's next iPhone.
The new Nokia phones will also face stiff competition from Samsung, which last week unveiled the world's first Windows Phone 8 model, and new models from HTC and Google's Motorola.
Nokia needs the new models to succeed as it has logged more than 3 billion euros in operating losses in the last 18 months, forcing it to cut 10,000 jobs and pursue asset sales.
Analysts expect it to lose another 700 million euros in the July-September quarter as it sells 3.6 million Windows Phones, down from the last quarter.
In comparison, Samsung said on Thursday it has sold more than 20 million units of its flagship smartphone Galaxy S3 alone in 100 days.
Copyright Reuters. Click for restrictions.
Issue: 315 | May 2013
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