Nokia has again cut their phone prices putting their cheapest smartphones on a direct collision course with the middle of the range phones from rivals Samsung.

Nokia have said that their price reductions are part of its normal regular business, as we know the phone maker usually cuts its prices a few times during the course of the year. Apparently they have cut prices by up to 10%.

Now Nokia’s cheapest model of smartphone the 5230 retails for around 170 euros however the wholesale price is now below 120 euros. The ongoing demand for cheaper smartphones has helped despite the recession.

According to Nokia revenue from smartphones increased 26% in the quarter from the previous quarter to a massive 3.9 billion euros. Obviously influencing the overall result. These falling prices of smartphones has impacted on handset vendors such as Sony Ericsson. Source – reuters.com