Nokia Australia confirms phone price rise - News - Communications

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This story was printed from ZDNet Australia.
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Nokia Australia confirms phone price rise

By Andrew Colley and Cass Warneminde, ZDNet Australia
February 08, 2002
URL: http://www.zdnet.com.au/news/communications/soa/Nokia-Australia-confirms-phone-price-rise/0,130061791,120263364,00.htm

Despite facing massive user criticism over claims that it's product quality is sub-par, Nokia Australia has confirmed that prices for its mobile handset prices are likely to rise this year.

The prediction, first made by the company's mobile phones president Matti Alahuhta yesterday, has been supported by Nokia's local operation.

"As new technology are facing moving away from just voice functionality their additional features may increase average mobile phone selling price across the range," a spokesperson for Nokia Australia told ZDNet Australia.

The prediction aids arguments that the mobile phone will become a luxury item in Australia as deals to subsidise mobile phone purchase slowly disappear from the market.

According to Nokia, the Australian market will become more segmented. Pre-paid mobile phones will occupy the no-frills end of the market while well-heeled consumers carry sophisticated PDA-like devices with colour screens, multimedia and MP3 functionality.

The announcement comes amidst a flurry of angry user sentiment against Nokia's product quality, with many customers expressing concern over alleged defects affecting several Nokia mobile phone models.

Alahuhta announced his forecast yesterday in conjunction with an upbeat announcement by the company that its prospects are positive despite tough market conditions.