Lend a ear to Nokia Corporation (NYSE:NOK)’s latest $40 handsets

Posted by George Brook July 5, 2013 0 Comment 862 views

Though Nokia Corporation (NYSE:NOK)’s position as the world’s 2nd largest mobile phone-maker is untouched, their struggle to barge into the smartphone niche has come to naught. A large percentage of the world’s population is veering towards smartphones, tablets and mobile internet connectivity, but not everyone can afford to shell out hundreds of dollars for a handset. Especially in emerging markets, the average amount that a person would be wiling or able to spend on a handset is $20-$60. And the Asian markets are the ones that offer promising growth. This has always been the niche that Nokia has tried to fill in with their no-frills handsets.

The new entrants

The Finnish phone-maker announced that it will start shipping-out two cheaper models and the Nokia 207 and 208 should hit the shelves some time soon. The third handset that is slated to be launched in the next phase is the 208 Dual-SIM version. These handsets will be preloaded with the Nokia Xpress Browser. This browser compresses data and will have various social applications such as Facebook, Whatsapp and Twitter. In most probability, the target market is going to be teens and pre-teens.

The cheapest and the best

In a statement, NOK said these new models are the company’s “most affordable 3G devices” yet. A $68 handset with internet connectivity is definitely value for money. However, Nokia continues to sell it’s below $40 phones in various Asian markets. With these new launches the company hopes that at least a certain percentage of these customers will end up buying a second Nokia handset, as a backup one, since they have been priced so low. There is no doubt that the latest mobile gizmos have a mind boggling range of applications. However, not only do they drain the pocket but the battery gets drained super-fast as well. Nokia is also launching a 24-hour battery handset to beat the battery-power issue.

Though there are people who will scoff at the idea of filling their pockets with cheap technology, Nokia may still have the last laugh. The Indian and Chinese markets offer massive potential to a mobile manufacturer who is willing to drop its handset prices and woo the masses with more affordable handsets.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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