Nokia ended months of speculation by launching a series of Android-based phones at the Mobile World Congress in Barcelona yesterday.
The Nokia X, X+ and XL handsets target the affordable smartphone segment and use a "forked" version of Google's Android 4.1 operating system.
Nokia smartphones have until now operated on Microsoft’s Windows Phone platform for its more expensive models, while relying on its own Asha platform for the cheaper segment.
Microsoft announced a deal to acquire Nokia's handset business in September for US$7.2 billion.
While Nokia's mobile phone sales were second only to Samsung in 2013, it lags badly in the smartphone market, ranking outside the top five manufacturers globally, according to Gartner.
The move to Android helps to address one of the main complaints against Nokia smartphones – namely the scarcity of available apps compared with Apple's App Store and Google Play store.
Nokia X users will have access to Android Apps via the Nokia Store and a series of third-party stores including SlideMe and Russia’s Yandex, but crucially not Google’s Play, meaning that the full range of Android apps will not be available.
“This may be a few years too late, but it is a much needed move by Nokia to recapture share of the smartphone market by becoming part of the Android ecosystem,” says David McQueen, the principal analyst at Informa Telecoms and Media.
While the mid-range smartphone segment was increasingly competitive, solid designs and the enduring strength of the Nokia brand worked in the new handsets’ favour, said Mr McQueen.
The market for very low-cost smartphones would grow four times faster than that of other smartphone segments, said the Nokia chief executive Stephen Elop, citing research by Strategy Analytics.
Mr Elop said the Nokia X handsets would be a feeder to the company’s upmarket Lumia range, which did not see any product launches.
“It definitely makes sense for them to continue to target the lower to middle end,” said Roberta Cozza, a research director with Gartner.
Sales of Nokia Lumia smartphones more than doubled to 30 million last year, with much of this volume accounted for by mid-range models such as the Lumia 520, rather than higher end models, such as the Lumia 1020.
“They ultimately needed to have a series of phones to protect their user base in those segments from being eaten by other Android players,” said Ms Cozza. “The higher end of the market is a tougher play for them.” The Nokia X will retail for about Dh450 and will be available in select markets immediately. The X+ and XL will retail for Dh500 and Dh550, respectively, and will be available early in the second quarter.
It was not immediately clear when the handsets would be available in the UAE.
The company also launched the Asha 320 budget smartphone, priced at €45, which will also be available immediately.
The X range puts further pressure on the already struggling Asha brand, said Ms Cozza.
“Asha was already struggling, as it doesn’t offer the breadth of apps available on Android that even lower-end users were after,” she said. “If the X phones are successful they will eat into Asha’s market.”
jeverington@thenational.ae
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