Monday, December 3, 2012

Nokia Corporation (ADR) (NYSE:NOK) Fights With Android With More Asha Phones

The Lumia lineup of the Nokia Corporation (ADR)(NYSE:NOK) may prove to be a key to the company’s resurgent smartphone hopes. However, the company cannot afford to lose focus on its feature phone business. Nokia’s business has been waning at an alarmingly high rate amid a slow and painful move to Windows Phone. Its feature phones sales have held up comparatively well and continue to be lucrative in spite of Android’s increasing popularity. It is a smart move on Nokia’s part that apart from marketing the Lumia well in developed markets, it is also launching more phone models based on Symbian operating system that are targeted at its traditional customers in the emerging markets.

The mobile phone manufacturer based in Finland has recently taken the curtains off the two new additions to its evolving collection of Asha phones, the Asha 205 and 206, with a variety of social networking features. The Asha 205 has a dedicated Facebook button while the Asha 206 has access to Twitter and Facebook right from the home screen. Nokia has also implemented a feature called Slam that is designed to let users to share content almost immediately with friends using Bluetooth technology. With the help of these features, Nokia is expecting to allure its first-time users and compete better with inexpensive Android smartphones that have been putting forth a downward pressure on costs in developing markets since a long time now.

The most valuable market for mobile business of Nokia has historically been the up-and-coming markets where, even though its market share has been decreasing alarmingly, it has managed to remain ahead of the remaining terms of total shipped units. Nokia’s emerging markets division is responsible for 20% of the total value of the company with cash accounting for an extra 25%.

Entry of cheap Android touch smartphones has rushed margins, leading to Nokia’s decision of increasing its feature set to look more like smartphones and justify its price points better.

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