Nokia: Apple iPhone could enhance demand for feature rich expensive phones

Nokia: Apple iPhone could enhance demand for feature rich expensive phones

Market analysts have said that Nokia and Motorola could suffer in the US and European market from the upcoming launch of the Apple iPhone.

However, Nokia sees a positive side of this launch. It’s almost guaranteed that the Apple iPhone would be a mega success. At least in the North American market.

The North American mobile phone market is basically made up of contract based packages where the consumer ends up paying nothing or little for the handset itself.

This means that the mobile phone makers have to sign up deals with the mobile service providers and offer huge discounts to keep away competing products.

The customer as a result does not like the idea of paying for phones with high end features like the recently launched Nokia N95.

With Apple iPhone, things could change as the mobile phone user in the country would get used to the idea of paying around 500 USD for the instrument.

Nokia N95

Apple iPhone

Nokia has some exciting products in the higher end markets and they just might end up gaining from the launch of Apple iPhone. They would be able to compete against Apple by offering better products at competing prices.

Nokia CFO Rick Simonson said in a statement: “The consumer … hasn’t had a lot of choice to go out and purchase these kind of higher-end, feature-rich multimedia devices. If that can help that market grow, I think that gives us an opportunity.”

he added: “Don’t get me wrong, they will bring some things to the table that we have to be responsive to, but we have been investing in this area or some time. We are leading in multimedia convergence.”

He further said: “It (Nokia N95) is already out there, doing many of the things that people are talking about the iPhone doing. The iPhone is interesting. It’s very much a validation of what we’ve been doing, in terms of saying there is a multimedia device out there that people will pay for.”