Nokia Expects to Benefit From Higher Phone Prices

Trefis members see Nokia benefiting from higher mobile phone prices.
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Nokia

's

(NOK) - Get Report

could be boosted by higher mobile phone pricing in emerging as well as developed markets.

Trefis members have created forecasts for two key drivers of Nokia's stock over the last week: (1) Nokia Developed Markets Mobile Phone Prices and (2) Nokia Emerging Markets Mobile Phone Prices. These forecasts suggest that both the drivers will trend slightly above the estimates of the in-house team of analysts at Trefis.

Nokia competes with other mobile phone makers

Motorola

(MOT)

,

Research in Motion

(RIMM)

and

Apple

(AAPL) - Get Report

.

We currently have a Trefis price estimate of around $12 for Nokia's stock, about 33% above the current market price of around $9.

We estimate that Emerging Markets constitute around 53% of the Trefis price estimate for Nokia's stock. In comparison, Developed Markets account for 17%. The stock is quite sensitive to (1) Developed Markets Mobile Phone Prices and (2) Nokia Emerging Markets Mobile Phone Prices. Below are charts showing recent estimates created by Trefis members for the two drivers in detail.

The average of Trefis member forecasts for Developed Markets Mobile Phone Prices indicate a decrease from around 88 euros in 2010 to 70 euros by the end of the Trefis forecast period, compared to the baseline Trefis estimate of a decrease from around 87 euros in 2010 to 62 euros by the end of the Trefis forecast period.

The member estimates imply an upside of 2% to the Trefis price estimate for Nokia's stock. In the past, Developed Markets Mobile Phone Prices has decreased from 142 euros in 2003 to around 91 euros in 2009.

Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of Nokia's stock to Developed Markets Mobile Phone Prices.

The average of Trefis member forecasts for Nokia Emerging Markets Mobile Phone Prices indicate an increase from around 53 euros in 2010 to around 59 euros by the end of the Trefis forecast period, compared to the flat baseline Trefis estimate around 51 euros over the Trefis forecast period. The member estimates imply an upside of 7% to the Trefis price estimate for Nokia's stock.

In the past, Nokia Emerging Markets Mobile Phone Prices has decreased from Euro 122 euros in 2003 to 54 euros in 2009.

Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of Nokia's stock to Nokia Emerging Markets Mobile Phone Prices.

Our

complete analysis for Nokia's stock is here

.

Trefis

is a financial community structured around trends, forecasts and insights related to some of the most popular stocks in the U.S.