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Is Nokia differenciated enough to be the Price Maker?

HMD announced its 2018 phone lineup in India on April 4th, currently comprising of Nokia 8 Sirocco, Nokia 7 Plus and Nokia 6 (2018) for the price of ₹50,000 (770 USD), ₹26,000 (415 USD) and ₹17,000 (260 USD) respectively. Though the price is lower than Europe pricing but definitely higher than China’s, and in a soo highly price sensitive and competitive market as India, only negative review they gained here was “The phones are overpriced”. The price fixed from speculation here with respect to China’s effective 2300¥ pricing, Nokia 7 Plus was expected to be priced around ₹22,500 or around 55 USD less. Yes, even this tiny difference is gaining lot of negative support for the brand here. What are your views on this, how would you have priced the products in one of the most competitive and price sensitive phone markets ? IS HMD completely helpless in terms of their pricing ? Reply below.

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Community Hero

Doesn't it partly depend on import taxes? Most HMD phones are made in China, so to sell them in India they have to pay India import taxes. I think FIH have just opened a factory in India so it's possible this will bring some price reductions, but probably not immediately.

Actually there's Government initiative called 'Make In India' to rival over BPO and inviting manufacturing in India by giving tax confessions and other benefits. HMD Global is already under the initiative (well, I think, they come with Made In India Stamp). But yes last week or so govt. increased duty on imported cellphone by 20% and components by 15% but HMD Global Vice President India - Ajay Mehta reacted on it as (sic) "it will have a minimal impact on our business as all our current portfolio of Nokia Phones are manufactured in India" (as per report by Digit magazine). So actually it had a edge over its competitors here. IDK, there must be reasons.

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Btw MadBilly, how did you earn that Community Hero badge may I ask ?

Community Hero

Thanks for clarifying the import taxes thing, I didn't realise that HMD phones sold in India were also made in India - that's great news!

The HMD/Nokia community team very kindly gave me the "Community Hero" badge for being nice to people :D (I think). There was a discussion that I thought had become personal, insulting and offensive so I tried to calm it down. My action wasn't universally welcomed, but I think the community team liked it - at least, I think that's why! Their official explanation is here:

Cheers :)

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Tech Wizard

I own a Nokia 5 (Made in India). 
I still feel I paid a premium price of 13K for my phone compared to other phones of similar configuration which sell for 8k-12k (Redmi 4 and others). But I really appreciate Nokia phones for their build quality (Metal!) and they are great for regular / daily use.

I expected Nokia 7 to launch in India, but it seems to be a China exclusive model. OnePlus 5, with SD 835 was priced around 28k compared to SD 660 of Nokia 7 Plus, hence the "Overpriced" tag.

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Well the build quality of HMD-Nokia is really good, no doubting that, But the question is - Does that justify it's price ? Look at the Nokia 8 released last year in India for ₹36,999 which was very well received on build quality but faced the same remark here 'overpriced'. Around 7 months later it was slashed to 28,000 and now is available for 26,000. (A 170 USD discount even before a year after launch !). Now, it may not have failed like the extremely innovative but overpriced Blackberry Priv, but the same thing may happen to the extremely well build but overpriced Nokia also if it continues heading to that direction.
Well, Nahant's and my point is from the extremely price sensitive Indian market's concept (even a 20-30 USD difference makes a difference), which is also hugely owned by Chinese tech companies operating at extremely low margins. I wonder what the consumers from the European countries' situation is and what they have to say on this...

Community Hero

I think most manufacturers (except Apple and Google, maybe Samsung) are operating at low margins in Europe.

The Nokia/HMD/Foxconn partnership could also be considered a "Chinese tech company" since the manufacturing is done by Foxconn (albeit at factories in India for the Indian market, as you said) and the software seems to be written/adapted by a Chinese company too (Evenwell?).

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