Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Nokia Finds a Market on the Low End
Nokia Finds a Market on the Low End

By Adam Dickter
February 22, 2013 11:27AM

    Bookmark and Share
"There is sizable population across the globe which can't even afford a $50 phone," said analyst Neil Shah, "and there lies the opportunity in near term for vendors such as Nokia to strengthen its position by promoting ultra-low-cost feature phones as other vendors shift their focus completely towards smartphones." Feature phones are 90 percent of Nokia's shipments.
 



Struggling Finnish handset maker Nokia appears ready to increase its output of low-end devices in addition to marketing its top-of-the-line Lumia devices that run Microsoft's Windows Phone 8.

Low-cost phones are an increasingly important force in the market as wireless networks reach emerging markets around the world.

Heavy Sales, Low Profit

"Cheap phones [such as] feature phones is almost close to a billion-unit market globally," said senior wireless analyst Neil Shah of Strategy Analytics. "Nokia commands almost a third of this market and is undisputed king in this segment. However, actual revenues and profits generated from feature phones is fairly small compared to the total industry revenues."

Nokia will unveil a new line of low-cost phones, to compete with China's Huawei and ZTE, at next week's Mobile World Congress in Barcelona, news agency Reuters quoted company sources as saying. The report noted that Nokia has spent the past two years playing catch-up with market leaders Samsung and Apple for state-of-the art smartphones. A lower-price version of its Lumia devices, now selling for more than $200, is also in the works, the sources said. (Apple has denied reports that it may be working on a cheap iPhone.)

Nokia saw its 14-year reign as the world's top phone maker fall to Samsung last year. According to IDC Research, Nokia did not make the Top 5 smartphone vendors of the fourth quarter, falling behind (in order of market share) Samsung, Apple, Huawei, Sony and ZTE.

Low-cost phones are particularly important in countries where carriers do not subsidize the cost of devices sold with two-year contracts.

Feature phones now amount to nearly 90 percent of its Nokia's shipments at present, helping Nokia generate enough revenue to turn around its struggling smartphone business, Shah said. Low-cost smartphones have been cutting into feature phone sales in the $50 to $150 range.

"There is sizable population across the globe which can't even afford a $50 phone, and there lies the opportunity in near-term for vendors such as Nokia to strengthen its position by promoting ultra-low-cost feature phones as other vendors shift their focus completely towards smartphones," he said.

More Brand Share

The proliferation of cheap phones in the market may help smaller companies and allow more people access to the mobile Internet but is no cause for immediate worry for those at the top, he added.

"It won't have a direct monetary impact on the likes of Samsung and Apple's revenue or profit share in near-term," Shah insisted.

"However, the increase in volume share does strengthen Nokia's brand share and mind share for consumers buying these cheap phones. As a result, feature phone manufactures like Nokia have some glimmer of hope to upgrade their current installed base of feature phone users with future Nokia smartphones leveraging the built brand share, mind share and trust share. This is how Nokia built its business in emerging markets."
 

Tell Us What You Think
Comment:

Name:





 Mobile Tech
1.   T-Mobile Calls 'BS' on AT&T Promo
2.   Win Phone 8.1 Update Already on Way
3.   Researchers Tout Battery Breakthrough
4.   Samsung Postpones Tizen Phone
5.   Verizon Throttling Data Speeds


advertisement
T-Mobile Calls 'BS' on AT&T Promo
Says 'Best Ever Pricing' is a joke.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Is the Amazon Fire Phone a Winner?
It coulda been a contender -- but isn't.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
 
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.