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High- and low-end cell phones

High- and low-end cell phones

It seems you can't please anyone anymore when it comes to cell phones; apparently both ends of the consumer spectrum simply want more. Reuters is reporting that Nokia is having trouble meeting the demand for its high-end Vertu cell phones. The models, which can run as high as $5,000, feature parts made from platinum, gold, and diamonds. I can't imagine who wants that much bling in a cell phone, but perhaps Nokia needs to get into the mining business.

Meanwhile, analysts following LG and Samsung have started to criticize the Korean kids for not offering enough low-end phones to emerging markets. Reuters says both companies have experienced slower sales growth lately, while Nokia, Sony Ericsson, and Motorola continue to expand steadily. Though LG and Samsung have rolled out buzz-worthy phones that focus on high-end design and features, they haven't produced enough basic models for less advanced markets as Motorola and Nokia have. That lack of differentiation is holding the companies back, the article says. What's more, Motorola has reaped huge success because of its ever-popular Razr, and Nokia has tremendous brand recognition, while Sony Ericsson's Walkman and Cyber Shot models have boosted its fortunes.

During the second quarter of this year, Motorola continued to hold the number-two spot in handset sales with 51.9 million units shipped worldwide. Nokia was the leader with 78.4 million phones, Samsung came in at number three with 26.3 million, and Sony Ericsson rose to fourth place with 15.7 million. LG, however, fell to the fifth position with 15.3 million phones shipped.