Nokia’s Price Cuts Seen as Deperate by Mr. Market

July 6th, 2011 by Trefis Team
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Source: Google Finance

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Nokia (NYSE:NOK) slashed the prices of some of its popular smartphones in Europe by around 15% on Monday. According to Reuters, these cuts have happened on some of the company’s flagship products including the N8, C7 and E6. The report also states that although these are not very big cuts per model, the breadth of products receiving price cuts has not been seen for some time. [1] Nokia’s move is largely seen as an act of desperation to stymie its dwindling sales, and consequently the stock opened 3% lower Tuesday. It recovered some to close around 1.6% lower at $6.30. Nokia has struggled to compete against Apple (NASDAQ:AAPL), Research in Motion (NASDAQ:RIMM) and Google (NASDAQ: GOOG) Android-based smartphone companies with its market share steadily sliding in recent years.

Our $9 price estimate for Nokia stock is about 45% above market price.

See our complete analysis for Nokia stock here

Notes:
  1. Nokia cuts smartphone prices, Reuters, July 5th, 2011 [↩]