Handset makers ponder larger-than-usual price cuts to counter bulging inventories
Samsung already declared that the handset market simply isn't what it used to be, and now it seems like a bunch of its rivals are begrudgingly nodding their heads in agreement. According to a new report from Reuters, Nokia and some of its main competitors have begun to "slash prices as demand falls and retailers cut inventories after lackluster holiday sales." Not surprisingly, demand for new handsets was down in the critical last quarter of 2008, and the falling demand at a time when retailers are looking to scale back on inventory holdings has left many with few options. eQ Bank analyst Jari Honko noted that there are just "two ways to cut inventories -- writedowns or dump them on the market," and it seems that most of the cuts thus far have occurred on the mid- to high-end handsets in Europe. Not to be disrespecting any bottom lines, but can we North Americans get a little of that discount love over our way?
[Image courtesy of Guyana Providence Stadium]
