Nokia's Way Back: Low-Cost Smartphones

Nokia wants to be a player in the US market again. However the handset OEM is facing fundamental challenges as it tries to get back in the game here. For example it doesn't having billing support from carriers for its Ovi apps store. Despite having potentially lots of apps, the absence of simplified billing will be an initial (if not long term) problem for Nokia.

Nokia will also be hard-pressed to compete at the high end of the smartphone market. The US market is now the most competitive in the world for smartphones and the dominance of RIM and the iPhone is not likely to be successfully challenged in the near term by Nokia. In addition, any smartphone costing more than $200 (with subsidy) is dead on arrival as a mainstream device. 

Price is a huge driver or barrier to adoption -- often unappreciated by those writing about mobile issues. 

What then can the company do? It can pump out low-end smartphones (or smartphone-like phones) that are inexpensive. Getting handsets into the hands of US users is the first order of business and right now the only way to do that is to offer phones that are priced around $100 or so. 

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Related: AT&T considering lower-cost iPhone plans