Nokia will unveil a low-cost smartphone on Google Android operating system. The new phone will be targeted at emerging telecom markets such as India, Africa, China, Latin America, etc.
The plan to launch a budget smartphone is despite its association with Microsoft and its competing Windows system, Wall Street Journal reported.
Microsoft is in the process of acquiring Nokia phone business in a deal valued at around $7.2 billion. The deal will be closed in the first quarter of 2014.
HTC, one of the small rivals of Nokia, on Monday said it would shed the tag of a premium phone firm and launch a cheap phone soon to improve market share and revenue.
At present, Samsung, the Korean smartphone vendor, tops the chart of largest Andorid OS users.
Recently, Shanghai-based Canalys Analyst Jingwen Wang said: “Market uncertainty and caution affected Nokia’s performance in Q4 2013.”
With Microsoft’s acquisition of its devices business is yet to complete, as did arguably insufficient marketing, as Nokia and Microsoft failed to stimulate sufficient demand for the latest Lumia products to deliver a seasonal sales boost.
With Nokia Lumia accounting for such a dominant portion of Windows Phone shipments, the growth of the OS faltered too. It will be vital that on completion of the acquisition, integration takes place quickly and thoughtfully.
Canalys suggested that software major Microsoft has much to do if it is to continue carving out a growing share of the smart phone market. It needs to drive the platform to new entry-level price points, deliver innovation and new features, particularly at the high-end phone. In addition, Microsoft should proactively work with, supporting and encouraging developers to commit to building compelling apps, and bring its app story closer to parity with its competitors.
Wall Street Journal report says the handset division of the Finnish company, which is in the final stages of being acquired by Microsoft, will show off the new phone at the Mobile World Congress in Barcelona later this month.
The new Android phone will be aimed at emerging markets and will not feature some of Google’s higher-end, custom Android features.
Microsoft and its main handset partner Nokia have struggled to make an impression in the smartphone market dominated by Samsung’s Android devices and Apple Inc’s iPhone.
According to Strategy Analytics, 79 percent of smartphones shipped worldwide last year ran on Android, 15 percent were iPhones running Apple’s iOS and only 4 percent ran Windows Phone software.
