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Nokia to target emerging markets with new inexpensive Lumia

post #1 of 14
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While rumors persist that Apple is planning to launch a low-cost iPhone, Nokia is set to unveil its own inexpensive handset at next week's Mobile World Congress.

In addition to a lower-priced version of its Lumia smartphones series running Windows Phone 8, Nokia is also set to launch a basic phone that will compete with budget players like Huawei and ZTE, which are popular in China. The models will be unveiled in Barcelona next week at the Mobile World Congress industry show, according to Reuters, which cited unnamed company sources.

Nokia
Nokia's Lumia 920 (left) and Lumia 820 (right).


Just how much cheaper the new Nokia Lumia handsets will be remains to be seen. The company's current flagship device, the Lumia 920, is available through AT&T for $99.99 with a new two-year service contract, or $100 less than Apple's least expensive iPhone 5 model.

AT&T also caries Nokia's current low-end Lumia 820 for $49.99, while the company's previous-generation Lumia 900 is available for 99 cents with a new contract.

Nokia's apparent interest in the low-end market comes as Apple is rumored to be working on its own less expensive iPhone model designed for emerging markets like China and Brazil. On Friday, analyst Katy Huberty with Morgan Stanley expressed increased confidence that Apple will release a cheaper "iPhone mini" to continue its growth.

An estimated 65 percent of the current smartphone market is driven by inexpensive handsets that are purchased by customers who do not want to be locked in to a two-year service contract. While Apple competes in the $400-and-up high-end market, it's estimated that most sales ? 580 million ? come in below that price point.

Currently, Apple's cheapest iPhone without a contract is the iPhone 4, which is available for $450 in the U.S. But local taxes increase the price to $490 in China, and $750 in Brazil.

Nokia's Lumia 920 also costs more than $600 without a carrier contract in the U.S., as well as some European markets.
post #2 of 14
No, "rumors don't persist" it's the same rumor bouncing around the internet, getting re-re-re-reported over and over again.

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post #3 of 14

So everyone is now going after the "emerging markets".

 

A few days ago Samsung announced a new entry-level model line, the Rex (likely Tizen-OS) to answer Nokia's current base model line-up. Now Nokia announces they're going to better address those same emerging-market needs with a much less expensive basic model(s) that may or may not be Windows-based? It may get crowded fast.

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post #4 of 14
Quote:
Originally Posted by gwmac View Post

Apple is not afraid of crowded markets. If 580 million sales occur below $400 there is a huge opportunity for Apple simply because those cheap Android phones truly suck. Android is actually a far tougher competitor with the expensive flagship type models phones because they offer some features not found on the iPhone like larger displays. They also do not suffer the same problems as the cheap Android phones because they have far more ram, internal storage, powerful CPU, and run Jellybean. But these cheap Android phones often are far slower, have smaller displays, suffer crashes from lack of enough internal storage, and many other issues. 

 

If Apple could introduce a phone to truly compete in this market space it would wipe the floor with Android. Let's not also forget the status symbol importance for many in poorer countries that comes with owning a premium brand like Apple. 

 

How does anyone in Brazil even afford to buy any phone if they add $350 tax to just an iPhone 4? 

Most of the announcements so far appear to using proprietary OS's, not Android. I'm not sure Android can be licensed without Google services, which might make Android too expensive a build to be used for basic "dumbphones". I think that may be the reason for the recent mention of proprietary OS's like Tizen, Bada, Brew and the like. They may need require the hardware that Android licensing needs. Dunno.

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post #5 of 14
Quote:
Originally Posted by gwmac View Post

Not sure I follow you. That 580 million figure was for smart phones selling under $400. If you included dumb phones with brew and the like it would be many billion. The vast majority of those 580 million cheap smart phones currently being sold here in the U.S. and around the world are Android phones. 

From the very first two paragraphs of the article.

"While rumors persist that Apple is planning to launch a low-cost iPhone, Nokia is set to unveil its own inexpensive handset at next week's Mobile World Congress.

In addition to a lower-priced version of its Lumia smartphones series running Windows Phone 8, Nokia is also set to launch a basic phone that will compete with budget players like Huawei and ZTE, which are popular in China. "

 

AI is mixing two different discussions in the same article. The one you see and the one I saw. If you go by the earlier AI article using the same market numbers you'll see hat I mean.

http://forums.appleinsider.com/t/156075/apple-likely-to-debut-199-iphone-as-low-cost-smartphone-market-hits-135b-in-2013#post_2280790

"This low-end segment is important given we estimate it is a $135B market in 2013 that Apple is currently not participating in," Munster writes. He notes the sector will account for 60 percent of smartphones, or 540 million units at a $250 average sales price.

In the core markets of China and India, the cost of an average low-end handset is $138 and $140, respectively. The iPhone 4 sells for an average of about 265 percent more in those countries."


Edited by Gatorguy - 2/22/13 at 9:50am
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post #6 of 14
Quote:
Originally Posted by Gatorguy View Post

Most of the announcements so far appear to using proprietary OS's, not Android. I'm not sure Android can be licensed without Google services, which might make Android too expensive a build to be used for basic "dumbphones".

 

Anyone can use Android in a device for free.  You cannot call it Android x.x compatible though, without conforming to compatibility hardware, APIs, and tests.   Example document for 4.0 here.   This assures that standard applications will run.

 

Licensing Google Services (Maps, Google+, Play services, etc) is a separate deal that you negotiate with Google for.   

 

Quote:
I think that may be the reason for the recent mention of proprietary OS's like Tizen, Bada, Brew and the like. They may need require the hardware that Android licensing needs. Dunno.

 

I think that with those, it's more that they can go at their own pace, and perhaps do more oddball stuff without worrying about compatibility.

post #7 of 14
Quote:
Originally Posted by KDarling View Post

 

Anyone can use Android in a device for free.  You cannot call it Android x.x compatible though, without conforming to compatibility hardware, APIs, and tests.   Example document for 4.0 here.   This assures that standard applications will run.

 

Licensing Google Services (Maps, Google+, Play services, etc) is a separate deal that you negotiate with Google for.   

 

 

I think that with those, it's more that they can go at their own pace, and perhaps do more oddball stuff without worrying about compatibility.

I always thought that to be called Android required compatibility and a license to Google services. AFAIK Google owns the Android trademark altho the basic code is (supposedly) open-source and free to use.

 

EDIT: Yup. Can't call your OS Android without Google's permission.

http://www.google.com/permissions/trademark/our-trademarks.html

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post #8 of 14
Quote:
Originally Posted by gwmac View Post

Apple is not afraid of crowded markets. If 580 million sales occur below $400 there is a huge opportunity for Apple simply because those cheap Android phones truly suck. Android is actually a far tougher competitor with the expensive flagship type models phones because they offer some features not found on the iPhone like larger displays. They also do not suffer the same problems as the cheap Android phones because they have far more ram, internal storage, powerful CPU, and run Jellybean. But these cheap Android phones often are far slower, have smaller displays, suffer crashes from lack of enough internal storage, and many other issues. 

If Apple could introduce a phone to truly compete in this market space it would wipe the floor with Android. Let's not also forget the status symbol importance for many in poorer countries that comes with owning a premium brand like Apple. 

How does anyone in Brazil even afford to buy any phone if they add $350 tax to just an iPhone 4? 

The Lumia is a Windows phone you know.
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post #9 of 14
Quote:
Originally Posted by Gatorguy View Post

I always thought that to be called Android required compatibility and a license to Google services. AFAIK Google owns the Android trademark altho the basic code is (supposedly) open-source and free to use.

 

Using the name "Android", and Google services, are separate, though sequential, processes.

 

See this FAQ.  Excerpts below:

 

 

Quote:

"Devices that are properly compatible can seek approval to use the Android trademark."

 

"... if a manufacturer wishes to use the Android name with their product, or wants access to Google Play, they must first demonstrate that the device is compatible.

 

How much does compatibility certification cost?

There is no cost to obtain Android compatibility for a device. The Compatibility Test Suite is open-source and available to anyone to use to test a device."

How long does compatibility take?

 

The process is automated. The Compatibility Test Suite generates a report that can be provided to Google to verify compatibility."

 

The automated compatibility test is the main step to use the brand name "Android".

 

A more rigorous certification is necessary to get access to Google Services such as Maps, YouTube, Nav, and the Play Store.  From what I've heard, you have to send in several sample devices, which Google tests over a few weeks.  If all of them pass their tests, then you can include (or at least talk about including) the Google apps.

post #10 of 14

Thanks for that sir.

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post #11 of 14
Quote:
Originally Posted by KDarling View Post

 

Anyone can use Android in a device for free.  You cannot call it Android x.x compatible though, without conforming to compatibility hardware, APIs, and tests.   Example document for 4.0 here.   This assures that standard applications will run.

 

Licensing Google Services (Maps, Google+, Play services, etc) is a separate deal that you negotiate with Google for.   

 

 

I think that with those, it's more that they can go at their own pace, and perhaps do more oddball stuff without worrying about compatibility.

 

Quote:
Originally Posted by Gatorguy View Post

I always thought that to be called Android required compatibility and a license to Google services. AFAIK Google owns the Android trademark altho the basic code is (supposedly) open-source and free to use.

 

EDIT: Yup. Can't call your OS Android without Google's permission.

http://www.google.com/permissions/trademark/our-trademarks.html

 

Quote:
Originally Posted by KDarling View Post

 

Using the name "Android", and Google services, are separate, though sequential, processes.

 

See this FAQ.  Excerpts below:

 

 

 

The automated compatibility test is the main step to use the brand name "Android".

 

A more rigorous certification is necessary to get access to Google Services such as Maps, YouTube, Nav, and the Play Store.  From what I've heard, you have to send in several sample devices, which Google tests over a few weeks.  If all of them pass their tests, then you can include (or at least talk about including) the Google apps.

 

A very important missing point - to use Android in a device, one must be a member of the Open Handset Alliance and play by its rules. In addition to hardware conformity, a very important OHA rule is not to release hardware with an unauthorized fork of Android. Acer learned this the hard way last year.

post #12 of 14
Quote:
Originally Posted by stelligent View Post

A very important missing point - to use Android in a device, one must be a member of the Open Handset Alliance and play by its rules. In addition to hardware conformity, a very important OHA rule is not to release hardware with an unauthorized fork of Android. Acer learned this the hard way last year.

 

You do not have to be a member of the OHA to release an Android device.

 

There is also nothing wrong with releasing your own version based on Android, such as Amazon did. (Note that Amazon is not a member of the OHA, while Acer is.)

 

However, you are right that OHA members have committed to not releasing incompatible forks.  That's what Acer was about to do with a phone using the Aliyun OS.

 

(Even that might've been overlooked, if the Aliyun creators hadn't also pirated a bunch of Play Stores apps to put into their own app store.)

post #13 of 14
Originally Posted by KDarling View Post
You do not have to be a member of the OHA to release an Android device.

 

There is also nothing wrong with releasing your own version based on Android, such as Amazon did. (Note that Amazon is not a member of the OHA, while Acer is.)


You are playing with the term Android device to make your point. Is it that tough for you to admit ... oh yeah, that too? Or is it necessary to keep googling until you find a factoid to make yourself appear right all along?

post #14 of 14
Quote:
Originally Posted by stelligent View Post

You are playing with the term Android device to make your point. Is it that tough for you to admit ... oh yeah, that too? Or is it necessary to keep googling until you find a factoid to make yourself appear right all along?

 

 

I do not understand which fact you're debating.

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