Nokia cuts cell phone prices

Nokia Corp, the world’s top cell phone maker, has cut prices for many of its handsets in July, according to market data and industry sources.

Cell phone manufacturers are facing an increasingly intense battle for market share as demand for pricey phones has started to slow in the United States and Europe, where economies are under pressure from the global credit crunch.

The top cell phone maker slashed prices of up to 10 percent for selected music and media phones, while it made smaller cuts across the portfolio.

Nokia shares dropped after the news and was 2.2 percent lower by 9:21 a.m. EDT.

Meanwhile, the cell phone maker announced that it will release a successor to its widely popular N95 mobile phone on October 1.

The new Nokia N96 is slimmer than previous models and will have a slightly larger 2.8in QVGA screen, along with GPS and a 5-megapixel camera.

The mobile phone also doubles the storage of the N95 to 16GB, and has space for a memory stick to increase the storage even more.

Nokia said the new N96 handset will also have an integrated DVB-H receiver, and a small pull-out stand allowing owners to watch Freeview TV channels on the go.