Nokia has found itself in a fairly tough position this year, with profits falling sharply and some of its latest additions to its smartphone lines poorly received, it seems the company is considering cutting smartphone production in half next year.
Nokia’s practical dominance in the European was market never quite matched in the US market, a fact that has often been touted as one of the reasons for its current financial situation. Still, it’s strange to see Nokia cutting smartphone production by so significant a figure as 50%, but that’s what the company has effectively told Reuters it will be doing. Nokia’s head of smartphones, Jo Harlow, has been quoted as having said,
“We see … really fierce competition certainly in the high end, but we also see it in the mid to low end of smartphones increasing … We will defend our position, but we believe we also have tools to play offence as well as defence.”
When it comes to the question of just what tools Nokia has at its disposal when it comes to offensive pushes, there’s no clear answer, but we’d be willing to bet that the Finnish company’s netbook probably plays a fairly significant part in its plans. Nokia’s Booklet 3G is among the most highly anticipated netbooks for this winter, though so far it’s looking as though anyone who wants one could be fairly hard pressed to pick one up.
The decision to sell the device through mobile providers is on that will certainly stand Nokia well, cementing existing relationships with carriers that might not have been quite as solid after Nokia’s fairly abysmal year.
If you’d like to read more about Nokia’s cut in smartphone production, you’d do well to check out the Reuters piece on it, which has a lot more detail about the current situation at Nokia.