It appears there are a few rumours that Nokia are about to cut prices on their mobile phones by up to 20% to grab hold of market share from failing Motorola, and apparently these rumours have the likes of mobile phone manufacturers LG, who are proud of themselves for recently becoming the world’s number four, and Samsung somewhat spooked.
LG told Reuters that they are “carefully watching” Espoo and will be keeping an eye on their tactical moves over the coming months. LG will also counter with “product portfolio” and “marketing strength.”
Nam Yong, chairman and CEO of LG Electronics has told reporters that unless it could turn out products which “differentiated” themselves from Nokia then price competition was “inevitable.”
This originally stems from rumours that have Nokia thinking about lowering prices and making a big re-entrance into the South Korean mobile phone market sometime later this year. Yong has vowed to try to create “competitive products” rather than do down the road of competing on “cheap prices”, LG and Samsung are aware of just how that strategy can end.
LG CEO Yong also stated that LG would continue to target the “premium market” and will only move into the low end market when LG has managed to built up a presence there.
LG Electronics recently overtook Sony Ericsson to become the world’s largest mobile phone manufacturer.
Source — moconews