Nokia pins hopes on cheaper Windows smartphone

Feb 27, 2012 By ALAN CLENDENNING , AP Business Writer

Struggling cell phone maker Nokia Corp. has unveiled two new handsets that it hopes will revive its fortunes at the start of the world's largest mobile phone trade show on Monday.

Chief executive Stephen Elop told reporters at the Congress in Barcelona that the new phones - a low-price euro189 ($254) that runs on Windows software and a handset with a high-resolution 41 - demonstrates "the actions necessary to improve the fortunes of Nokia."

"With great products for consumers, I think the rest will fall into place," Elop said.

Analysts said the new smartphone could attract users because of its low price but investors sent Nokia shares down more than 5 percent to euro4.10 ($5.50) in afternoon trading in Helsinki, erasing a big boost it gained on Friday in anticipation of new announcements at the trade show.

Nokia has lost its once-dominant position in the global cell phone market, with running on Google's software and iPhones enjoying booming popularity.

The Finnish company is attempting a comeback with smartphones using Microsoft's in what Elop has called a "war of ."

"We will accelerate our global reach with new mobile devices and services," Elop said.

Malik Saadi, an analyst at the London-based Informa Telecoms & Media, said the introduction of Nokia's new Lumia 610 smartphone means the company is "now one step closer to bringing its (Windows Phone 7) to the entry level smartphone segment" and "clearly shows strong dedication" by Nokia to its Windows strategy and smartphones for the non-U.S market.

Nokia launched its new Windows Phone 7 in October, eight months after Elop announced a partnership with Microsoft Corp., in a major strategy shift for the firm. Nokia said it would gradually replace the old Symbian platform used in its smartphones with the Windows operating system.

Neil Mawston, a London-based analysts for Strategy Analytics, said Nokia's new camera phone is impressive - but that markets were expecting more.

"Technologically it is 'wow' but they have integrated it into a Symbian phone which is viewed as, rightly or wrongly, yesterday's technology, whereas I think there was some expectation that it might be in a Windows phone which is tomorrow's technology," Mawston said.

The new phones were introduced less than three weeks after Nokia announced plans to stop assembling cell phones in Europe by the year-end as it shifts production to Asia and to cut another 4,000 jobs - its latest attempts to cushion itself from stiff competition in the smartphone sector. The job cuts follow nearly 10,000 layoffs announced last year.

Once the bellwether of the industry, Nokia has lost its dominant position in the global mobile phone market, with Android phones and iPhones overtaking it in the growing smartphone segment. It's also been squeezed in the low-end by Asian manufacturers making cheaper phones, such as ZTE.

Nokia became the leading handset maker in 1998 and reached 40 per cent market share in 2008, but the company has gradually lost share since then - falling to below 30 per cent last year.

Explore further: Gift Guide: Strong photo, video gear options

1 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Nokia ends phone assembly in Europe, cuts jobs

Feb 08, 2012

(AP) -- Nokia Corp. plans to stop assembling cell phones in Europe by year-end as it shifts production to Asia and will cut another 4,000 jobs, its latest attempts to cushion itself from stiff competition in the smartphone ...

Nokia CEO: Co. to get billions from Microsoft

Feb 13, 2011

(AP) -- Nokia Corp. will get billions of dollars from Microsoft Corp. to ditch its current smart-phone software in favor of Windows Phone 7, Nokia CEO Stephen Elop said Sunday, in a defense of the deal.

Nokia dismisses Microsoft takeover report

Jun 02, 2011

Nokia chief executive Stephen Elop on Wednesday dismissed as "baseless" a report that Microsoft had agreed to purchase the Finnish company's mobile business.

Nokia's market share falls below 30 percent

Apr 21, 2011

Nokia Corp. reported better than expected first-quarter profits Thursday but its global market share dropped to below 30 percent for the first time in over a decade as the world's top cellphone maker continued to lose ground ...

Recommended for you

Ear-check via phone can ease path to diagnosis

Dec 18, 2014

Ear infections are common in babies and young children. That it is a frequent reason for young children's visit to doctors comes as no consolation for the parents of babies tugging at their ears and crying ...

Gift Guide: Home products come with connectivity

Dec 18, 2014

Do you really need an app to tell you to brush and floss? It seems every household appliance is getting some smarts these days, meaning some connection to a phone app and the broader Internet. But then what?

BlackBerry launches Classic in last-ditch effort

Dec 17, 2014

(AP)—BlackBerry is returning to its roots with a new phone that features a traditional keyboard at a time when rival Apple and Android phones—and most smartphone customers—have embraced touch screens.

Tag Heuer changes tune, now looking at smartwatches

Dec 16, 2014

Barely a few months after dismissing Apple's smartwatch, the new chief executive of luxury Swiss watchmaker Tag Heuer conceded Tuesday that such a hi-tech gadget might after all have a place in his firm's ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.