Nokia has responded to a steep decline in market share for mobile phones this year by slashing prices. Nokia's share measured by Strategy Analytics has dipped five percentage points in the past quarter to below thirty per cent. Last year Nokia garnered 38 per cent of all phones sold, almost three times its nearest rival.

Citing reports from the channel, the Financial Times said that phone prices were being trimmed by as much as 25 per cent across most models. Other reports cite cuts of between 15 and 20 per cent.

A bullish Motorola, which reported an unexpectedly strongest quarter this month, and Samsung each inch up by a percentage point, according to Strategy Analytics.

Nokia saw its share price plunge after reporting that its handset sales wouldn't meet expectations. The news prompted an ambulance-chasing class action from a specialist New York law firm. ®

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