Despite the main focus on Windows-based Lumia smartphones, Nokia Corporation (NYSE:NOK) hasn’t forgotten about the low-cost feature phone market. The European phone maker recently introduced two new cell phones to the public, including the Nokia Asha 308 and the Nokia Corporation (NYSE:NOK) Asha 309. Both new models retail for $99.00, and they’re expected to ship out during the last quarter of this year.
Although the Nokia Asha models don’t have all the bells-and-whistles that many people expect from a phone, feature phones are still a high-margin business, and a crucial part of Nokia’s business. Analysts have stated that lower-cost mobile phones are able to compete with the lower-end Android smartphones. Competition is crucial to business.
Nick Dillon, analyst for Ovum said, “”Although they don’t get as much attention as its smartphones, mobile phones play a key part in Nokia’s future. Mobile phones account for the majority of Nokia’s revenue today, and they are also vital for building loyalty with potential smartphone users in the future.”
Nokia Corporation (NYSE:NOK)still sells about one million feature phones a day, although they have lost about 3 billion euros(or $3.9 billion in US dollars) within the last three months alone, which caused them to close down sites and cut back tens of thousands of jobs.
Some analysts suggest that these phones will give the company more time, but they still need to find a way to revive their line of Nokia Corporation (NYSE:NOK) Lumia smartphones. Geoff Blaber, from CSS said, “The new Asha devices are essential to defend Nokia from a raft of low-cost Android alternatives. The continued strength of the mobile phone business is testament to Nokia’s scale and distribution advantages. Defending that business is critical if Nokia’s smartphone business is to weather the storm.”
The Asha phones will most likely appeal to the consumer who is looking for a low-cost cell phone, that isn’t too highly advanced in technology.