Nokia Aims Low With New Devices

Nokia Corp. (NYSE: NOK) expanded its device portfolio for emerging markets with the launch of two low-cost feature phones at a press event in Karachi, Pakistan, on Tuesday.

The dual-SIM Nokia 110 and 112 mobile phones are based on the company's Series 40 operating system and have an estimated retail price tag of €35 (US$45) and €38 ($49), respectively.

Nokia says the new models are designed to give an "Internet experience" to consumers in emerging markets and are part of its strategy to connect the "next billion" people to information and the Internet. For example, the phones come with Nokia's latest browser that compresses websites so that users can consume up to 90 percent less data on their phones, which is a useful feature considering that the phones only support GPRS and EDGE networks for data access. (See Nokia Updates Browser for Series 40 Devices.)

The Nokia 110 will be available in the second quarter this year in China, India, Latin America, the Middle East and Africa and Southeast Asia/Pacific. The Nokia 112 will be available in the third quarter this year in China, Europe, Eurasia, India, the Middle East and Africa and Southeast Asia/Pacific.

Why this matters
While Nokia is trying on claw back market share lost to Apple Inc. (Nasdaq: AAPL) and various Google (Nasdaq: GOOG) Android devices in the high-end smartphone market, the Finnish phone maker's traditional stronghold in emerging markets is starting to crumble. Feature phones like the 110 and 112 will help to shore up Nokia's position in those markets. (See Nokia's Nightmare Scenario and Nokia Loses Its Mobile Crown.)

But Nokia also needs to get affordable Windows Phone smartphones to emerging markets to capture consumers as they upgrade from feature phones like the ones launched today. One such example emerged today, in fact, as rival High Tech Computer Corp. (HTC) (Taiwan: 2498) launched its entry-level, Android-based smartphone, the Desire C, which the company described as "a great first smartphone."

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— Michelle Donegan, European Editor, Light Reading Mobile