In an interview to Telecoms.com, European general manager for devices at international carrier TelefÃ³nica, Simon Lee-Smith said that Nokiaâ€™s current smartphones including Nokia N8, Nokia Lumia 800 are expensive and not yet at the right price point. He also said that â€œIf Nokia wants to sell in volume, they need to bring out devices which are cost-competitive.â€
The vendor also used Nokia World to unveil a rejuvenated emerging market proposition based around feature phones heavy on functionality but low on price. â€œI hope theyâ€™re successful with that,â€ Lee-Smith said. â€œThey need to be able to subsidise their high end smartphones, because theyâ€™re too expensive.â€
Device vendors generally have unrealistic expectations of what carriers and consumers will pay for smartphones, Lee-Smith said. â€œAll device manufacturers seem to think that a â‚¬400-plus device is the norm. Well, it isnâ€™t. Customers and operators wonâ€™t pay that cost for a device which doesnâ€™t differentiate sufficiently.â€
He also added that simply improving the specifications of smartphones is not sufficient, andÂ â€œLetâ€™s not let the technology and cost curve ahead of the demand curve,â€ he said.