While the move is being considered as being inspired by the intention to take on the rivals Sony Ericcson and Samsung, Nokia said that this was just a routine change and was part of its normal, ongoing business.
As per a news agency report Nokia has cut costs by 10 per cent.
Nokia has gained from the demand for cheaper smartphones. Nokia's revenue from smartphones jumped 26 per cent in the Oct-Dec quarter.
Besides offering the phones at a cheaper prices, Nokia has gained from the fact that its competitors like Sony Ericsson focused more on feature phones with good cameras and music players rather than featuring computer-like open operating systems.