Samsung and LG have fared pretty well, though Sony Ericsson took a beating recently. Motorola, surprisingly, managed to turn a small profit for the quarter. With demand for devices slowing, manufacturers need every dollar that comes in the door. That means now is not the time for a price war, which will hurt margins.
Nokia doesn't seem concerned about its margins, though, and, according to Reuters, has slashed the price of many of its models by an average fo 10%. Some of the models seeing price drops are the 5310, 5610 and N81, all of which are multimedia, music-focused phones that compete head-to-head with Sony Ericsson's Walkman lineup.
Of course, Nokia officially declined to comment on any change in its pricing policies. I will say this, however: Nokia phones are expensive as heck, so price cuts are welcome. The E71, for example, which just went on sale here in the U.S., costs about $500 unlocked. The N95 cost $750 when it was first released, and, nearly 18 months later, still commands more than $550 at retail.
Whether or not this is an attempt by Nokia to maintain sales volumes in a turbulent market or just a simple price drop, it could spur others to follow suit. A price war is something that might be good for consumers right now, but it could be devastating to the phone manufacturers.
We'll have to keep a watchful to see if Nokia's competitors respond.