Finnish handset developer,
) is set to unveil cost-friendly smartphones on
) Android at the Mobile World Congress trade show in Barcelona
later this month.The launch is scheduled just prior to Nokia's
planned divestiture of its handset business to
) for $7.2 billion. The deal is expected to close by the end of
However, Nokia's Android smartphone will not comprise Google
Play Store or other apps of Google. The device will consist of
its own proprietary app store and pre-installed apps like Here
Maps and Mix Radio.
Increasing popularity of Android smartphones has compelled
Nokia to launch an Android smartphone. According to Gartner
Research, sales of Android smartphones in 2013 increased 74%,
whereas sales of Windows Phones declined 5% year over year.
Notably, sales of the Nokia's flagship Lumia smartphone series,
based on Windows Phone 8 operating system, also declined to 8.2
million in the fourth quarter from 8.8 million in the preceding
We believe Nokia's low-cost Android Phone is expected to boost
its handset business besides safeguarding its position against
major smartphone manufacturers like
) and Samsung. The device is also expected to gain popularity in
the emerging markets.
However, the exclusion of the popular Google Play Store and
other well-liked Google apps on Nokia's smartphone is likely to
Recently, Nokia reported its fourth-quarter results, where
earnings surpassed the Zacks Consensus Estimate but revenues
lagged the same.
Nokia currently has a Zacks Rank #2 (Buy).
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