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Price competition making smartphones less profitable

Posted on Sunday, August 01 2010 @ 09:47:01 CEST by

Reuters reports smartphone makers are going to see lower margins for the rest of the year as vendors are increasingly trying to outsmart rivals:
All top cellphone vendors including Nokia, Samsung Electronics and Research in Motion are rolling out new smartphone models for the holiday sales-fueled fourth quarter.

"The smartphone market is becoming heavily congested as a host of players seek to boost margins. The reality in the second half is set to be very different," said analyst Geoff Blaber from British consultancy CCS Insight.

"The market will swell in volume but price erosion will inevitably result in casualties as value is captured by a minority rather than the majority," Blaber said.



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