Nokia to cut N8 smartphone price to compete with iPhone and Android

Firm still likely to struggle for 12 to 18 months, analysts say

Nokia has cut the prices of its high-end smartphones, including the N8, C7 and E6, in an attempt to compete with Apple, Android and BlackBerry devices.

The handset maker maintained that the reductions are part of a pre-planned strategy, but declined to confirm the new prices.

"Price changes are part of our normal, ongoing business and from time to time we may adjust prices for specific products in specific locations. All business as usual," the firm said in a statement to V3.co.uk.

It is difficult to gauge how much of a price cut UK customers will actually see as Nokia has shut its online store.

V3.co.uk contacted the major UK networks to determine whether they will pass on the price cuts to customers. Vodafone declined to comment on its future pricing policy, and O2, Orange and T-Mobile have yet to respond.

However, Three said that it will not pass on any price cuts as it bought all of its existing stock at the original price.

Online retailers such as Clove and Expansys are listing the Nokia N8 around the £320 mark, making it £100 cheaper than the original SIM-free price, but it remains to be seen whether any further reductions will be made to tempt buyers.

Nick Dillon, platforms and devices analyst at Ovum, told V3.co.uk that he was unsurprised by the cuts given the competitive nature of the market, but that it is unlikely to make a difference.

"It doesn't really change anything. Nokia is having a tough time now and will probably continue to do so for the next 12 to 18 months as, even once Windows Phone handsets arrive, it will take time to ramp up production and sales," he said.

The Nokia N8 was released at the end of last year after numerous delays. Although the smartphone was highly anticipated, the revamped Symbian^3 operating system failed to draw people away from iOS, Android and BlackBerry.

Nokia has since announced that it will use Windows Phone as its primary platform, and that the first handset known as Sea Ray will be released in October.

The Nokia N9 is also set to be released this year, and will ship with the MeeGo platform and NFC technology.