In an attempt to compete more efficiently in the smartphone
) has unveiled two new low-priced versions of its Lumia handsets.
Containing high-end features, these latest Lumia devices will
give the company a full range of Windows-based smartphones
catering to a wide variety of customers.
In addition to Nokia's traditional services like Nokia Music
and Maps, the large screen Lumia 720 comes with a 1GHz processor
and NFC (Near Field Communication) technology. The smartphone
imitates the styling of Nokia's flagship Lumia 920 and houses a
6.7 megapixel camera.
The smartphone also possesses a 1.3 megapixel front-facing
camera that delivers HD quality pictures. Meanwhile, Lumia 520
comes with a smaller 4 inch touch screen and 5 megapixel camera
that uses the same Carl Zeiss lenses applied in Lumia 920.
Lumia 720, which is priced at $329 without carrier subsidies,
is expected to be launched in Hong Kong, Singapore and Vietnam in
the first quarter, while Europe, Africa and India will witness
the launch in the second quarter of 2013. The Lumia 520 is
expected to be retailed at $183 and will be available in the U.S.
markets via T-Mobile in the second quarter of 2013.
Nokia faced a lackluster 2012, as the company lost its title
as the world's largest cell phone manufacturer to Samsung
Electronics. Amid stiff competition from
) Android and
) iOS-based phones, the company also lost its smartphone
Nevertheless, the company's decision to join forces with
) is finally paying off as the latest Lumia 920 and Lumia 820
have performed better than its predecessors.
According to research firm IDC, demand for smartphone costing
less than $250 grew by 99% in 2012, while smartphones above $250
grew by only 23% during the same time frame. IDC also expects 45%
growth in smartphone shipment in 2013 backed by carrier subsidies
in developed countries and high demand for sub-$250 phones in the
Though Nokia still need to go a long way we believe that it is
targeting the right market. The next phase of smartphone growth
is expected to come from the less expensive handset segment as
sluggish rate of economic growth is forcing customers to curtail
The company expects to attract more customers and maintain the
sales momentum with these two low-budget phones, thereby
extending the reach of Windows-based phones.
However, on the flip side, both the handsets lack LTE (Long
Term Evolution) features, which puts the phone in an unfavorable
position as most of the latest smartphones come with LTE
features. It remains to be seen how the company fares in the low
priced smartphone market, which is being dominated by Samsung and
the Chinese handset manufacturers.
Nokia currently carries a Zacks Rank #2 (Buy).
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