Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is impressed with the magnitude of sales of its Flagship Lumia series in India. The Finnish phonemaker has been lagging behind juggernauts Apple and Samsung in mobile sales globally, but sales of Windows-based Nokia Lumia, fueled by rising income levels in the country, has been impressive.
What Nokia CEO feels
Nokia Chief Executive Officer Stephen Elop said that volumes of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) in India are surging. The handset maker has a wide range of Lumia phone models in India, varying from the expensive 920 to 620 to the budget 520 model, among others. He said that the company is happy with the response in India.
The Lumia series from Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), which runs on Windows OS, is available in India from the price range of Rs.9,800-Rs.36,000 ($200-$700). CEO Elop said that India has emerged as an apt example for the company where the strategy of releasing both expensive as well as entry level phones has worked well.
“I think India is a good example where we have to do both. There are countries around the world where only high end plays, United States as an example,” Elop said.
Elop also stated that income levels are increasing, along with the development in the middle and upper classes, in India. He is enthusiastic about the huge market in India and plans to tap opportunities in this market.
Elop said that the main target of the company is to encourage sellers to demonstrate the Lumia phones to customers when they come to buy a smartphone. Currently most sellers only show an iPhone or Android. The company will pursue sellers to showcase the Lumia phones more.
Net sales globally of Nokia devices declined by almost half in the first quarter ended March 31, 2013 at 6.1 million units as against 11.9 million units in the corresponding quarter of the previous year. Sales volume declined 8 percent on the quarterly basis. Sales of Nokia Lumia phones increased 27 percent during the first quarter of the current fiscal to 5.6 million units.
In the United States, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) sells the phones through telecom operators and thus a subsidy is provided on the phone, which in turn decreases the price of the phones.
Nokia’s New addition
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has recently added a new budget phone in its Asha range with the launch of Asha 501. After the acquisition of Smarterphone in November 2012, Asha 501 is the first budget phone in the Asha series.