It's still early days and we cannot write-off Nokia
Corporation (ADR)(NYSE:NOK)’s new Lumias just yet, despite being widely panned
by the critics and the gaffe over the misleading promotional videos.
But the Finnish handset maker has another ace up its
sleeve - its feature phones that are still the mainstay of the company.
Demand from emerging markets for the affordable and
multi-utility feature phones could help in the survival of the company.
Shares in Nokia, which were rising in anticipation
over its smartphones before the launch, tanked on the day of the launch and has
not quite recovered from it. The share price has dropped more than 36 preen so
far this year.
On the other hand expectations over Apple’s iPhone 5
have driven the stock price of the Cupertino company up to record highs, making
it the most valuable company in the United States.
Will NOK Bounce
Back After The Recent Retreat? Find Out Here
Disregarding for the moment the fate of its Lumias,
the company's feature phones are seeing a lot of traction in emerging markets
such as India. This is a segment where it does not have to compete with Apple
while others like Samsung and LG which
also offer lower-end phones do not quite match up to the European company's
standards.
Feature phones have more capabilities than basic
mobile phones but are not as capable as smartphones.
There are countries where a significant proportion of
the population do not have the infrastructure or the consumer affluence to buy
smartphones. and it is in these areas where feature phones like that made by
Nokia more than suffice.
As the second-biggest seller of mobile phones in the
world, the Finnish company has a global franchise that can capitalize on demand
for these products.
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