O2's parent company has branded Nokia handsets too expensive to sell in any significant volume.

European manager for devices at Telefónica, Simon Lee-Smith, described the handsets as "not yet at the right price point".

"They need to subsidise their high end smartphones because they're too expensive," he told Telecoms.com.

"If Nokia wants to sell in volume, they need to bring out devices which are cost-competitive," he went on, adding that Nokia is "beginning to listen" and that he expects to see more Nokia deliver "more commercially effective" handsets in 2012.

New and old

Lees-Smith was referring not only to the newly released Nokia Lumia 800, which will sell for around £399 SIM-free when released later this month, but also to older handsets like the Nokia N8.

But it's not just Nokia that's got price-tag ideas above its handset stations.

"All device manufacturers seem to think that a €400-plus device is the norm," said Lee-Smith. "Well, it isn't. Customers and operators won't pay that cost for a device which doesn't differentiate sufficiently.

"Let's not let the technology and cost curve ahead of the demand curve."

From Telecoms.com via cnet