Is this far fetched?

[j0hn6oo]

Cingular puts the headlock on Nokia, telling them what they want on their phone (N80 comes to mind). Nokia powers out of the headlock and tells Cingular they are nuts because Nokia makes plenty of jack everywhere else in the world. So they body slam Cingular (and us poor customers of Cingular feel the impact). Then Nokia grabs Cingular by the throat and tells them "Hey, if you carry one of our high end phones i.e. N80, N73 or N95, the value of the phone will decrease because its been picked up by the largest U.S. carrier, and we (Nokia) can't continue to make a ton of money that way". Then they give Cingular the old pile driver and finishes it with the People's elbow and Cingular is down for the count...1,2,3..

Is that a reasonable scenario??

[Cleda]

how does a carrier picking up a phone decrease the value of it? high end nokias are branded in euro, so it would make no diff here.

[Red-Green]

Because you can get a big discount from your carrier by signing a contract. And if more people do that, then more people have them, therefore the demand goes down.

[P i t e n]

the demand goes down for retail market, but i am sure Nokia could sell tones more through carriers. i.e. sell more at discounted price.

[joe83alone]

You need to retake ECO101. Lower price to consumers will not decrease quantity demanded, it will increase it. Furthermore, just because it cost $600 to the consumer doesn't mean Nokia eats $400 in losses for each phone sold - Cingular subsidizes the difference. Hence, lower price to consumers -> more demand for N95 -> more money for Nokia -> Nokia working out a deal with Cingular to sell N95. The problem lies in whether or not Cingular figures they can make enough money off of the N95 addition to their line-up considering they will have to pay whatever amount they subsidize the phone for to Nokia.

[-x-candy-x-]

I dont need to retake anything. I posed a possible scenario and asked if it was far fetched because I dont know, and I was asking other peoples opinions. What I was trying to say, is that if people start getting them through their carrier all of a sudden, sure demand will go up, but the more it gets saturated, then demand would go down.

[Sonic117]

Most of the money made by manufacturers are from the operators. Without operators picking them up, models won't do very well.

[SmileForLife]

i dont think nokia is concerned about that, they have subsidized phones throughout the world, including the n95. demand will go up if its cheaper, and demand will die once the phone is old. isnt that true now anyways? you dont see people jumping to buy older phones, even at lower prices. bottom line, the more a phone sells, better off nokia is

[mongrel ryan]

I agree that Nokia will probably never bow down and do exactly what Cingular wants because they have enough carriers elsewhere carrying the high end phones. And those other carriers are, for the most part, not as demanding as Cingular..

[halloween~freak~666]

That's not far fetched.

This is Farfetch'd