Nokia says no to low-cost mobile phones

NOKIA HAS turned down Communications Minister Dayanidhi Maran’s grand proposal of manufacturing a sub $30 mobile phone at its manufacturing plant at Chennai in India in the immediate future.
The Finnish telecom major has also refused to manufacture a sub $100 3G phone advocated by Global System for Mobile Communications Association (GSMA) recently at its board meeting held in Delhi early this month.
Speaking to the Indian media, Robert Andersson, Executive Vice President, Customer and Market Operations and member of the Nokia Group Executive Board said, “If you look at the total cost of ownership (TCO), we bring value to our customers. Offering low cost (sub $30) phones is not likely to happen from the Chennai factory in India in the near future.” When pressed whether the company is completely ruling out manufacture of low cost phones from its Chennai factory, Andersson said, “It may happen one fine day.” Andersson said, Nokia phones offer best TCO and, hence, a low-cost phone is not a priority.
The Nokia team responsible for customer care in emerging markets also ruled out any possibility of manufacturing a sub $100 3G mobile phones anywhere in the world.
Mauro Montanaro, VP Customer Market Operations, Asia Pacific Nokia, said, “We are responsive to the markets. Eventually, we will offer 3G phones at certain price points to the emerging markets. Some of the initiatives get good publicity, but the reality of manufacturing does not allow it (of producing a sub $ 100 3G handset.).” “The question now is whether there is a market for handsets at such a price point. Then we will look at the volumes. Only then can we examine offering products at such price bands,” said Montanaro. A plea that Nokia made a few years ago when it was quizzed about the possibility of offering low cost entry-level phones in India.