Nokia may raise handset price; launches low-cost phones

NEW DELHI: Finnish mobile giant Nokia on Monday said that it is looking at the possibility of hiking the prices of its products globally given the rising input costs even, as it launched low-cost phones for emerging markets.

"We are looking at the issue of price hikes. The increase will be globally," Nokia Vice-President and Managing Director (Markets) D Shivakumar told reporters here.

He, however, declined to comment on the timeframe that the price hike will take.

With the dollar touching a high of Rs 49.95, handset marketers were looking at increasing handset prices by as much as 15 per cent post Diwali.

Handset manufacturers import around 60 per cent of the components from China and Taiwan. With even the yuan taking a hit against the dollar, the handset makers have been left with fewer options.

The mobile handset market in India is 10-million phones a month and is growing at a fast pace. Aggressive competition has kept prices very competitive.

The company is now focussing on the emerging markets in a big way to shore up sales as the developed markets are gradually getting saturated.

Aimed at these markets, Nokia today launched seven handsets in the price range of 25 to 90 euros (about Rs 1,530- 5,500).

"In 2002, Nokia unveiled a strategy to lower the cost of owning and operating a mobile phone and to bring the benefits of mobile telephony to people in emerging markets. Today, we are expanding that vision by introducing a number of devices and services that aim to bring the power of the Internet to these markets as well," Nokia Executive Vice-President (Devices) Robert Andersson said here.