Nokia 520 highlights the company’s enhanced competitiveness in the smartphone arena, according to a report from ABG Sundal Collier. The new offering from Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is equipped with the leading features of the flagship Lumia 920 and is attractively priced at a 25 percent discount to its predecessor. The compatibility of features between the 920 and 520 shows the ease with which Nokia’s technology platform permits frictionless re-use.

The budget phone from Nokia targets the stronghold emerging markets and also cost conscious consumers in the developed world. The report terms the 520 as a “product for the greater masses.” The report expects Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) to sell about 14 to 15 million Lumia 520 handsets between now and end of December (2% market share globally).

In the future, the handset maker in alliance with Microsoft Corporation (NASDAQ:MSFT) will come up with a whole new game plan to recapture the lost ground. The Finnish company will offer compelling price points; along with this distribution network and marketing campaign will be expanded.  Commenting on the outlook for the company, the report says “Nokia’s smartphones entity seems well placed to return to black operating territory in the second half on gross margin in the low twenties.”

The Nokia Lumia 610, the company’s volume product last year based on WP 7, will be beaten in volume by Nokia’s new addition to the WP 8 repertoire, Lumia 520. The Lumia 520 comes at a 25 percent discount at the point of initiation and is equipped with better features  and hardware  than Lumia 620.

The distinguishing features include wireless charging, state-of-the-art imaging, and enhanced reality and Here maps. With these features and aggressive marketing Lumia 520 will definitely surpass Lumia 620 in volume and that too by a great margin.

costs components and value added services lumia-610 and 520
Image: ABG Sundal Collier
comaprison of the shipments trajectories of lumia 610 and 520 by quarter
Image: ABG Sundal Collier

Analyzing the shipment pattern, the report expects deliveries at a rate of 0.3 million in the first quarter, 3 to 4 million in the second quarter, 4 to 5 million in third and 6 to 7 million in the last quarter. The company has sold about 2.0 to 2.5 million Lumia 620 handsets in 2012. The report expects the Lumia 520 to rule the Nokia’s entry-level segment till Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) “debut its “420” and “320” Lumia devices at even more compelling prices, down to EUR 100, before the end of the fourth quarter.”