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Nokia CEO says company will have to produce cheaper phones-CNBC

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http://www.marketwatch.com/News/Story/Story.aspx?siteid=mktw&guid=%7B3544BAA4%2D272D%2D46B3%2DB1....

STOCKHOLM (MarketWatch) -- Finish mobile telecommunications company Nokia Oyj (NOK) will have to produce even cheaper phones in order to maintain its market share, Chief Executive Olli-Pekka Kallasvuo told CNBC Europe Thursday in an interview.
"We will have to get cheaper," Kallasvuo said.
He said he didn't think further gains in global market share would mean less profitability, pointing to the one percentage point year-on-year market share gain the second quarter to 34%.
Kallasvuo said he pinned his hopes for future growth on third-generation mobile phones and further expansion in emerging markets like China. "Consolidation will help us there," he said.
The Nokia CEO didn't anticipate any big deals like the one with Siemens AG (SI) in the near future, but said the company will seek to make smaller acquisitions as it sees fit. He also said the Siemens deal won't prevent Nokia from continuing its share buyback program.

On its licensing dispute with Qualcomm Inc. (QCOM), Kallasvuo said the company 'trusts and believes' it will eventually reach an agreement with the U.S. firm.

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