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Nokia Fights to Stay Off the Endangered Species List by Releasing Two New Feature Phones

Finnish giant, Nokia, launched two more inexpensive mobile handsets, the Nokia 100 /101, in an attempt to survive as its market share continues to fall rapidly among emerging economies.

Nokia, the mobile handset manufacturer whose brand is well known for its cheap phones, has launched another two low cost mobile phones, the Nokia 100 and 101.  Analyst see the move as an attempt to increase its hold on low income consumers which comprise the major portion of the population in emerging economies in an effort to survive in its ongoing battle with local Asian brands like Micromax, ZTE, etc.

New Nokia 100/101: Features and differentiation.

  • Nokia100 and 101 are low-cost phones based on the Series 30 operating system.
  • Display has a grid-based system of icons.
  • Integrated flashlight.
  • Affordable Color Display Mobile Phone.
  • Battery life: Last up to 25days on standby, or 6.7 hours talk time.
  • Come with an FM radio and – on the Nokia 101 – an MP3 player with a headset included in the box. There’s also support for memory cards up to 16GB on the Nokia 101.

Nokia 101 and 100 will go on sale this quarter (Nokia 101) and next (Nokia 100) in selected markets. Without local taxes or operator subsidies they will cost consumers around €25 for the Nokia 101 and about €20 for the Nokia 100. The difference between the two is that the Nokia 101 supports dual-SIM and has an MP3 player.  The 101 also supports memory cards up to 16GB.

Nokia has seen itself suffocated over the past few years by low end phone manufacturers like Micromax and ZTE.  Meanwhile, Nokia is feeling pressure at high end by Apple, the various Android manufacturers, and RIM whose older generation smartphones are being continually priced closer and closer to Nokia’s feature phones.  Nokia has tried in recent years to enter the smartphone segment, but superior marketing and hardware from competitors has prevented Nokia from gaining any real significant market share.  For instance Nokia’s Symbian OS, is seen as severely outdated by the users and application developers have shifted iOS and Android OS as a result.

 Nokia‘s Market share in India, China, and Worldwide

According to a report from the BBC, Nokia’s market share has dropped to 29% in spite of its deal with Microsoft. The Economist forecasts that Nokia will be consumed by Microsoft at some point.  Staying independent of U.S. corporate influence is the one thing the European mobile giant managed to avoid for decades.

In general, Nokia losing market share has been a common trend, but now it has been forced out of emerging economies as well which was it strongest position and saving grace for many years.

Nokia, which during the first decade of 21st century dominated the Indian market with a 91% share, has fallen sharply to 39% during the beginning of the second decade. The news is no better in China where Nokia’s market share has shrunk to 19% from 38.6%.

The short story is that Nokia phones are quickly becoming an endangered species worldwide.

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