Nokia expecting mobile phone ASPs to further fall

World’s largest maker of mobile phones Nokia has said that they expect the industry average selling prices (ASPs) for handsets to continue to fall.

This was said in a statement by the company’s Chief Financial Officer Rick Simonson.

Nokia and its closest rival Motorola have been facing pressures on their profitability in the recent times due to their increased reliance on low cost mobile phones.

Simonson said in a statement: “Yes, ASPs have declined over the last few quarters. We expect that to continue. For the year we see the industry having some ASP decline.”

The company further revealed that last month the average selling price of its phones fell to about $117 (89 Euros) in the fourth quarter, compared with 99 Euros in the year-ago period.

Simonson added: “The pricing dynamic was probably a little more robust than we might have expected.”