Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has announced it is expanding its portfolio with low- and mid-range devices with an objective to increase its market share in emerging markets, particularly in China.
The Finnish handset maker is planning to grow apart from premium smartphones. Qith its new affordable devices it has ‘reinvented’ the segment, claims Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) CEO Stephen Elop.
Khrom Capital was up 32.5% gross and 24.5% net for the first quarter, outperforming the Russell 2000's 21.2% gain and the S&P 500's 6.2% increase. The fund has an annualized return of 21.6% gross and 16.5% net since inception. The total gross return since inception is 1,194%. Q1 2021 hedge fund letters, conferences and more Read More
The company launched four devices at MWC keeping in mind the budget-conscious consumer. The devices have RRPs of between €15 for the Nokia 105 and €249 for the Lumia 720.
Along with the affordable devices, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) also unveiled its most affordable Windows Phone 8 device to date, Lumia 520 and Nokia 301 with a price tag of €65. The CEO said that the company is planning on increasing sales volumes by covering all price ranges.
For future, the company will first come out with a premium device followed by the cheaper model based on the premium one. Elop also said that Nokia will carry on with the Asha brand for its lower-end phones and is “completely focused” on Windows Phone as an OS for its higher-end devices.
The handset maker has been tasting success, netting some high-profile companies such as The Coca-Cola Company (NYSE:KO). Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) also grabbed Mall of America, the largest U.S. retailer, which recently announced moving its employees from BlackBerry to Nokia Lumia devices.
On Microsoft Corporation (NASDAQ:MSFT), Elop said that both of them have a good opportunity to move enterprise users to a better platform. Both companies will face the competition together, said Elop. The strategy of coming up with affordable models based on the premium one is an important one, mainly for countries like China. Nokia Lumia 520 will be good for Chinese market and will help the company to expand its market there, said Elop.
However, among all the success the company may be a bit worried over a possible Microsoft Corporation (NASDAQ:MSFT) smartphone that it wrote in a regulatory filing “Microsoft may make strategic decisions or changes that may be detrimental to us. For example, in addition to the Surface tablet, Microsoft may broaden its strategy to sell other mobile devices under its own brand, including smartphones.” The software giant though has not revealed any such plans yet.