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Nokia to build 50% less premium phones in 2010

Nokia planning smartphone cutback
Nokia planning smartphone cutback

Nokia has admitted it's looking at cutting its premium smartphone output next year, as competition grows from its rivals.

The company, which enjoys market leadership in both the smartphone and cheaper handsets for emerging markets sectors, says it needs to protect its assets.

"We see ... really fierce competition certainly in the high end, but we also see it in the mid to low end of smartphones increasing," said Jo Harlow, chief of Nokia's smartphone unit according to Reuters.

"We will defend our position, but we believe we also have tools to play offence as well as defence."

Dual focus

In 2009 Nokia releases around 20 high end devices, including the N97, the 5800 and the E75, but has also dramatically increased its push into cheap phones, which are proving popular in countries with no landline infrastructure.

With the likes of Motorola, currently the fifth largest manufacturer, enjoying something of renaissance with the new Dext and Milestone, with more to come, Nokia will be keen to keep pushing on in the smartphone market.

But if it comes down to a case of protecting one element of the business, it could be that Nokia might take more of a back seat with smartphones in order to service the rapidly increasing cheaper end of the market.

Gareth Beavis

Global Editor-in-Chief

Gareth has been part of the consumer technology world in a career spanning three decades. He started life as a staff writer on the fledgling TechRadar, and has grown with the site (primarily as phones, tablets and wearables editor) until becoming Global Editor in Chief in 2018. Gareth has written over 4,000 articles for TechRadar, has contributed expert insight to a number of other publications, chaired panels on zeitgeist technologies, presented at the Gadget Show Live as well as representing the brand on TV and radio for multiple channels including Sky, BBC, ITV and Al-Jazeera. Passionate about fitness, he can bore anyone rigid about stress management, sleep tracking, heart rate variance as well as bemoaning something about the latest iPhone, Galaxy or OLED TV.