Nokia Cuts Phone Prices

Nokia had cut many of its handset prices in July, according to market data and industry sources.  A European telecom industry source has said that Nokia make the steepest price reductions of up to 10 percent for selected music and media phones, while it make smaller cuts across the portfolio.

As demand for expensive phones slow in the U.S. and Europe due to a staggering economy, manufacturers are facing an increasingly intense battle for market share.  Nokia's price cuts will put further pressure on its smaller rivals.

Shares in Nokia fell on the news and were 2.2 percent lower at 17.39 euros by 9:21 a.m. EDT, underperforming the 1.8 percent weaker DJ Stoxx European technology index .