Nokia unveils its cheapest ever phone
Published: 4 November, 2008
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True to its promise to beef up its attack on developing markets, Nokia has unveiled its lowest cost model ever, priced at €25, but claims this will not kill its margins. Unlike Motorola, whose profits suffered severely from its venture into ultra-low cost handsets (ULCHs), Nokia says the impact of the 1202 and other cheap units will be offset by volume, its production efficiencies, increased sales of smartphones and web services, and by the gradual migration of users in new economies to midrange web-driven models.
Although the 1202 shows Nokia venturing into true ULCH territory, most of the models continue to support its key strategy - tapping into the growing middle classes in many developing economies, and selling devices in the next price bracket up from a ULCH, but offering web and multimedia facilities at low cost. So its new line-up includes its first musicphone in the XpressMusic range for new economies.
The Nokia 1202 was developed specifically for very rural areas, with a flashlight, extended battery life, loud ringtones and a phone book for up to five users. These rural features are also included in the 1661, Nokia's lowest cost color phone including an FM radio and a large color screen, and a price tag of just €30.
"In 2002, Nokia unveiled a strategy to lower the cost of owning and operating a mobile phone and to bring the benefits of mobile telephony to people in emerging markets. Today, we are expanding that vision by introducing a number of devices and services that aim to bring the power of the internet to these markets as well," said Robert Andersson, EVP of Devices at Nokia.
The 5130 XpressMusic device costs €90, but the main vehicles for the web services launches next year will be the Classic line - with the lastest models being the 2320, 2323 and 2330, priced from €40 to €50. These come with features like low cost integrated camera, FM radio and web browser. Slightly higher up the mobile internet tree comes the 7100 Supernova, a multimedia phone priced at €75.
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