) got a major shot in the arm as it has started selling it mid
ranged Windows based smartphone Lumia 521 through the largest US
Walmart Stores Inc.
LTE (long term evolution)-enabled Lumia 521 is the U.S.
version of Nokia's Lumia 520 and has a 4-inch touch screen, 5
megapixel camera and is powered by
) latest Windows operating system (OS).Notably, the phone is
priced at $129.99, almost $20 less than Home Shopping Network's
(HSN) offer price and comes with
T-Mobile US Inc.
) $30 per month unlimited data and text plan.
These types of offers attract the low-income group,
particularly the youth segment, and was sold out on HSN soon
after its launch in the previous week. As per the latest media
report, the smartphone has received great customer response, and
has been sold out within an hour of its launch on the Walmart
In the last couple of years, Nokia has fallen behind in the
smartphone leadership race, which has been mainly dominated by
iPhone and other Android powered smartphones. Initially, the
partnership with Microsoft didn't yield any meaningful result and
Nokia continued its struggle in the smartphone market.
However, in the last couple of quarters, the Finnish handset
manufacturer has impressively performed based on a good show from
its Lumia series and currently controls almost 80% of the
Windows-based smartphone market. In the recently concluded
quarter, Nokia shipped 5.6 million Lumia handsets, registering a
27.3% sequential growth.
We believe this to be a significant deal for Nokia, as the
no-contract plan coupled with Walmart's huge store base will
extend Lumia 521's reach to a wider market area, thus boosting
the sale of its Lumia series.
Significantly, the more users Nokia will add, the more
application developers it will attract, which in turn will
increase customers. However, Windows still lags behind in the
application front to both iOS and Android, which could act as a
threat for Nokia's future growth.
Currently, Nokia carries a Zacks Rank #3 (Neutral).
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