Nokia aims to undercut rivals with cheaper phones: Report

Nokia aims to undercut rivals with cheaper phones: Report

Summary: When you're faced with an innovation and popularity problems, how do you keep your foot in the door of the lucrative mobile market? Do what Nokia has already done and hit the cheaper side of the price scale.

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TOPICS: Nokia
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Nokia could soon launch a range of cheaper models at the Mobile World Congress in Barcelona next week, as part of efforts to recapture the lower end of the mobile market where the company has historically been fairly successful. 

Sources speaking to the Reuters news agency suggest Nokia will refocus its efforts where the company has historically seen a boon to its overall bottom line.

While Nokia's relationship with Microsoft in the Windows Phone and Lumia space isn't going away any time soon, Nokia will aim to compete with Huawei and ZTE—among others—in the low-end smartphone space.

Details about pricing were not given. Nokia declined to comment to Reuters.

It was only a half-decade ago in which we saw Nokia's profits booming thanks to the company's firm grip of the emerging markets. But now those markets are maturing, and low-end smartphones are increasingly being used in areas such as Africa, the Middle East and Asia. Nokia has missed its opportunity to hit this developing yet still emerging market hard by focusing on the high-end Lumia devices that are sold in mature markets.

The point of no return, as it were, was when Nokia ditched Symbian for Windows Phone. Nokia still generates vast amounts of revenue—albeit little to no profit—from its low-range of Series 40 devices. 

According to the firm's latest financial earnings, Nokia's mobile phone net sales declined by about 21 percent, while its smartphone sales were down more than 50 percent, showing that Nokia's grip of the low-end market is stronger and more retainable than its still relatively new smartphone unit. 

Topic: Nokia

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8 comments
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  • Even cheaper phones?

    I mean Nokia has like the most popular phones models in the world that are one cheaper than another.
    DDERSSS
  • 2013

    The year when ZTE enters the high end market, and Nokia becomes a budget device OEM.
    theoilman
    • Nokia is not refocussing, they're broadening...

      Nokia is not "refocusing" its efforts on the low-end smartphone market. It's broadening its efforts... to compete on all levels... which is what Nokia has traditionally done, and also how Nokia became the largest phone manufacturer in the world (well, until recently).

      Nokia only made the sudden & drastic switch to Windows Phone just two years ago. It took them about a year to release their first phones. It makes sense that those first phones were eye-catching, high- and mid-range phones designed to get people talking. And they did.

      Now, Nokia is broadening its efforts to compete in less-developed markets and at lower price points. How else are they going to compete with "the army of (cheap) Android" handsets out there? It's a smart strategy.

      So, again, Nokia isn't focusing on the low-end... they're broadening.
      newyorkcitymale
  • Innovation problem?

    What innovation problem is Nokia facing? The Nokia Lumia 920 is more innovative than anything out of apple and arguably anything out of Samsung (although the Note 2 looks truly fantastic).
    toddbottom3
    • I am curious what innovation items ...

      you are referring to ?
      jkohut
      • Probably their outstanding ois that puts all others

        to shame. Or maybe their awesome touch screen which can be used with gloves on an blows away all others in viewability in direct sunlight. Or maybe their call quality which crushes all others. Or their mapping and directions which google doesn't even come close to. I could go on but you should get the point by now that they are ahead on both the hardware and software fronts. And malware, no, none.
        Johnny Vegas
      • Don't forget

        Wireless Charging
        to_be_announced
  • Wipe Out The Other Windows Phone Vendors

    Take full advantage of the fact that the other Windows Phone OEMs are paying Microsoft for each copy they ship, while Microsoft is shovelling loads of money to Nokia. That will allow Nokia to slash prices to predatory levels while continuing to enjoy the same level of profits it is already raking in. Then, when the other vendors give up and leave the market, Nokia can raise its prices to Apple levels, and rocket its profits accordingly stratospherically!
    ldo17