Nokia increases average selling price estimate
Nokia has unveiled a first quarter projection that runs contrary to what you might expect. Despite a fiercely competitive market, they have raised their estimate of the average selling price of mobile devices to $125. The average selling price in the fourth quarter of 2005 was $120 and Nokia was originally predicting that this quarter would be at the same, or slightly lower, level. Predictably, stock holders of the company were thrilled with the news. The stock price climbed 5% after the announcement.
The results come because lower-end handsets made up a lower than expected portion of their sales. That indicates that more people than expected are buying higher end handsets. This is the second straight month that Nokia has announced bullish news. Last month they raised their projection for growth in the global market to 15% over 2005, up from their original guess of 10%.
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