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Nokia Changes Directions, Decides On Switching To Budget Smartphones In The Future

NokiaFinnish mobile manufacturer Nokia is determined to dominate the handset industry again and this will be achieved by focusing on low-end phones and veering away from smartphones such as the Lumia series. The company only sold 4.4 million units of the high-end series in an industry that sold approximately 80 million other phones.

Over the past few years, Nokia has lost a significant amount of revenues and only recovered a small amount of it in the last quarter of 2012, stating that “Mobile Phones business unit and Lumia portfolio delivered better than expected results.” This, however, isn’t enough for the Finnish company to surpass Apple and Samsung in terms of income revenue, where the two giant mobile manufacturers are neck and neck in the battle for the best mobile phones in the market today.

Stiff competition is what Nokia has to face though. Apple and Samsung may have taken the lion’s share of the market when it comes to high-end phones but on the opposite side, Nokia will have to compete with formidable companies such as Huawei, ZTE, and Mediatek, mostly Asian manufacturers who produce low-end handsets. Mediatek, for instance, has plans of selling cheap phones in Asia, Africa, and India, where the units will be priced at less than $200.

The Asha series, a line of cheap handsets manufactured by Nokia, aren’t priced at more than $100 in countries like China and India and the company has even gone so far as including a cheaper model in the Lumia series, with the Lumia 620 prices starting at $250 without carrier subsidies. While budget handsets are where Nokia clearly makes more revenues, it doesn’t mean that the once dominating company should lose focus on higher-end units such as the Lumia series. The US and European markets still prefer high-end smartphones and these are areas where Nokia needs to push the expensive and high-end handsets more.

The announcement to switch focus on cheaper handsets will be announced next week, during the Mobile World Congress to be held in Barcelona, according to Reuters. If this will be a smarter move is yet to be seen but hopefully, Nokia will get back in track instead of spiraling downward into a position where it could no longer climb anymore.