The Nokia online stores, which at their peak operated in twelve countries, sell SIM free phones and Nokia accessories. While they typically gained a one week exclusive on new handsets, their pricing was not competitive with other online retailers. Typically customers could save around 10% by shopping through other online stores such as Amazon, Play.com or Mobile Fun.
Moreover, in Europe (where the majority of the online stores are 'located'), the majority of people buy their mobile phones through an operator, often receiving a subsidy for doing so. This further limited the addressable market for the online stores.
While the closures of the stores is high profile, they represent a tiny proportion of Nokia's overall sales network. For example, Nokia has more than 75,000 point of sales (partner outlets) in India alone. Nokia's pride may be hurt, just as it was with the Nokia flagship retail stores, but it is mistake to see this as anything more than the result of a strategic review indicating that the stores were not cost effective.
Mobile Today quotes a Nokia spokesperson as saying:
"We can confirm that Nokia is planning to close down its UK online store, although no date has been confirmed. The closure is not only in the UK but will also include our online stores worldwide. We are working closely with partners as part of a company overhaul and closing our online stores is part of a wider company strategy."
"We have many other retailer outlets that our customers can use to purchase our products. These channels will allow us to continue to meet our customers’ needs."
