Nokia defies reports of slow progress in music
Published: 19 January, 2009
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Price cuts are common after the Christmas buying fever dies down, but not on this scale among headline handset models. Carphone Warehouse said the reduction was "routine" and part of a general adjustment of cellphone pricing for January, which might be more dramatic than usual because of the downturn.
But analysts argued that 5310 sales had been poor and that, so far at least, Nokia has failed to get the message about Comes With Music's advantages over to consumers effectively. Insiders say the service did not hit Nokia targets during the run-up to Christmas, and while any revenues from the annual, unlimited, keep-it-forever plan would be a drop in the ocean for Nokia, CWM is important beyond money, because it is the first big test of the company's push to become a major player in mobile web services.
As quoted in the London Times, analyst Paolo Pescatore of CCS Insight, summed up Nokia's challenge. "Comes With Music is almost too good to be true," he said. "The average punter on the high street still doesn't understand how it works. Nokia needs to improve its marketing."
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