Nokia Corporation (ADR) (NYSE:NOK) is certainly a company that likes brand loyalty and is willing to pay any price to get it. For a company that has been languishing the last few years, but still has a decent following in emerging and developing markets, Nokia seems to be willing to bet that an affordable phone in the very intense feature phone market will help the company gain market share and brand loyalty for the future.
Nokia Corporation (ADR) (NYSE:NOK) has been trying to get some margins with the upgrades to its Lumia line of handsets, and now it’s delving into getting market share. Last week the company unveiled the Asha 210 with a bright new look at a reasonable price (about $75), and now the company is going lower than it has ever gone before with a Nokia 105 model. This one is a very “dumb” phone in that it doesn’t even have e-mail or Internet capability, but it supposedly boasts a battery that will last up to 35 days on standby before requiring a recharge. It can possess more than 12 hours of talk time on a charge, as well.
While this phone is not very fancy, it does offer some mode of communication and information-gathering that can very important in developing countries like in Africa, South America and Asia. This phone, however, is expected to be available in Europe.
Image: Nokia Corporation (ADR) (NYSE:NOK)
While it has no e-mail capability, users can receive SMS text messages for various information (like farming conditions or the weather) and the keypad is constructed so that dust or liquids may not get into the phone and cause damage to the components. While tools are limited on the 1.5-inch screen phone, there are some health tips and English-language lessons available.
And the beauty of all this … it costs just $20, with no contract to sign. This is easily the most inexpensive phone that Nokia Corporation (ADR) (NYSE:NOK) has ever made. The company is banking on its brand recognition to get people in developing nations to buy this phone in the hopes that eventually they will be upgrading to feature or smartphones and that they will consider Nokia first for future purchases.
What do you think of this approach by Nokia Corporation (ADR) (NYSE:NOK)? Should it gear itself toward market share and volume, or should it keep its focus more on margins? Let us know your thoughts in the comments section below.