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Nokia Announces Plans to Focus on Low Cost Phones For Emerging Markets
Corolla Financial analysts predict that Nokia’s strategy of developing low cost phones for emerging markets could be the catalyst to help turn the company around.
As cell phones are no longer a luxury good, it is logical to focus on the masses, and Nokia seems poised to dominate emerging markets where frills and internet are not considered necessity. While Apple and Samsung seem to have dominated the high end smart phone market, Nokia hops to instill global consumer faith that it is the premium value option.
In massive markets including China and India, Nokia hops to compete with generic devices that are currently dominating the market. By competing on price and delivering superior devices with the added benefit of global brand recognition, this task should not prove difficult.
Nokia Life Tools, already available in India, China, Nigeria, Indonesia, and soon in Kenya, enables users without a mobile data connection to receive timely updates on the topics they're subscribed to, allowing them to share messages with groups.
Real-time updates on agricultural markets could help farmers get the best value for their crops at market, letting them stay abreast of shifting prices.
Along with brand recognition, Nokia is hoping that its service features will help the company stay competitive in developing markets inundated with cheap alternatives. Nokia also hopes that a push in the developing world can pull the company out of a period of stagnation as Android and iOS devices swallow up most of the mobile device market.
After declining from a share price of nearly $40 in 2007, Nokia NYSE-NOK has declined to less than $4 and is currently trading at $3.63. Corolla Financial analysts believe that the recent news will boost share prices and that Nokia’s strategy could help to turn the company around.
Page Updated Last on: Feb 26, 2013