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onethreealpha is offline onethreealpha
2011-08-12 , 05:47
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#11
Originally Posted by 9000 View Post
People like to spotlight and worship companies selling goods at high profit margin, while ditching companies selling goods in high volume but at a relatively lower profit margin.
not making a judgement, merely pointing out that nokia has had to sacrifice some of their profitability to maintain the lead (at least in aus).

It could be expected that newcomers to the market are willing to sacrifice profits to get their product "out there" and help to rapidly establish a name for themselves, but old hands like Nokia usually only do so when they think they'll be in trouble if they don't. it doesn't help investor confidence either (Ballmer and Co might like it though)
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ericsson is offline ericsson
2011-08-12 , 07:51
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#12
Nokia don't sacrific profitability to maintain the lead. That is a hopeless point of view. They cut prices to increase profitability that would be lost with too high prices. An effect of this is that the competition must do the same, or they will also loose profitability. A big player can do this, a small player cannot, not without great losses due to less cost effective production and logistics. Everyone looses profitability, but the big ones increases their profitability in relative terms. The problem now is that Samsung is the one that gains most by this, but what else can Nokia do? Their hope is that WP will change this, so they can do both, some high profitable devices and a billion low profitable devices.
 
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Daneel is offline Daneel
2011-08-12 , 08:44
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#13
This is awesome! I have actually noticed that i have a mental ignore on ericsson's posts. Whenever i see his name my eyes instinctively skip a page.
 

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ysss is offline ysss
2011-08-12 , 09:07
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#14
Originally Posted by ericsson View Post
They cut prices to increase profitability that would be lost with too high prices.

If you cut prices without cutting costs nor increasing the quantities sold, then it WILL negatively affect your profit. DUH.
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erendorn is offline erendorn
2011-08-12 , 10:41
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#15
Originally Posted by ysss View Post
If you cut prices without cutting costs nor increasing the quantities sold, then it WILL negatively affect your profit. DUH.
note that there is often (yet not always) a negative correlation between price and quantities sold, all other thing beeing equal.
Notwithstanding the fact that other factors might impact quantities sold.
 
khuong is offline khuong
2011-08-12 , 11:10
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#16
This reminded me of back in the old day when Netscape dominated the browser market share and charged people for using its browser then Microsoft invested millions of dollars to build IE browser just to give away free.
 
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ysss is offline ysss
2011-08-12 , 11:15
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#17
Originally Posted by erendorn View Post
note that there is often (yet not always) a negative correlation between price and quantities sold, all other thing beeing equal.
Notwithstanding the fact that other factors might impact quantities sold.

Yup, that's why I mentioned quantity in my statement above.
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visN900 is offline visN900
2011-08-12 , 11:40
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#18
nokia's symbian failed them but they STILL THEY RETAIN THE TOP SPOT..

http://www.gsmarena.com/gartner_q2_r...-news-2992.php
 
ericsson is offline ericsson
2011-08-12 , 14:39
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#19
Originally Posted by Daneel View Post
This is awesome! I have actually noticed that i have a mental ignore on ericsson's posts. Whenever i see his name my eyes instinctively skip a page.
Still you managed to make this post You have to try harder than this little boy.
 
ericsson is offline ericsson
2011-08-12 , 14:50
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#20
Originally Posted by ysss View Post
If you cut prices without cutting costs nor increasing the quantities sold, then it WILL negatively affect your profit. DUH.
No one is arguing that. The point was that Nokia doesn't cut prices to "win" or "lead", they cut prices to increase profit (by hopefully increasing sales).
 
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