) has decided to offer
) video streaming services free of cost, for one whole year, to
Vodafone Group Plc.
) customers in U.K. Only Vodafone customers buying the Nokia
Lumia 1020 handset can take advantage of this new offer.
The Lumia 1020 is powered with a 41-MP camera and PureView
technology. It also features a 1.5 GHz dual-core S4 processor
with wireless charging facility. Lackluster demand for the
high-priced Lumia 1020 has forced the Finnish handset
manufacturer to promote its high-end smartphone either by
slashing its handset prices from $299 to $199, or by offering
lucrative free online Netflix services to its customers.
Moreover, with the holiday season ahead, Nokia will be rolling
out more such lucrative deals which in turn may consolidate its
On the other hand, the collaboration with Nokia will also benefit
Netflix as the company will easily foray into the European
market, following a highly successful stint in the U.S. market.
Over the last few months, Nokia has launched a number of exciting
smartphones and featured phones. In the second quarter of 2013,
the company sold only 7.4 million Lumia smartphones and 53.7
million Mobile Phones, each down 27% year over year. The average
selling price (ASP) in the Smartphones segment was $205.6, up 4%
year over year. Mobile Phones ASP was $34, down 16% year over
We believe such promotional bundle plans employed by Nokia will
help the company to boost sales in the upcoming holiday season.
) announced its decision to acquire Nokia Corp.'s handset
business for $7.2 billion (5.44 billion euros). The deal is
expected to close in the first quarter of 2014, subject to
approval by Nokia's shareholders and regulators.
Nokia currently carries a Zacks Rank #3 (Hold).
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