Nokia Finds Its 'iPhone Strategy': Price

Nokia has struggled to get back in the game in the US market, despite being the largest handset OEM in the world. It's almost certain that Nokia cannot beat the iPhone in terms of usability or mobile Internet experience. It's also unlikely that apps developers will come to its aid either.

So how can it compete? In a word: price. I've been thinking that the camera was a way for Nokia to compete but at the opposite end, building cheaper "good enough" smartphones may enable Nokia to gain a foothold in the US market again. 

Reuters published an article that discusses the apparent success of the 5800 Xpress Music phone in Europe, based on its "poor-man's iPhone" pricing:

Nokia introduced the 5800, its first touch screen phone, only late last year, but analysts said the lower price helps it beat iPhone sales in the Middle East, Eastern Europe and Asia, and there has been strong demand also in developed markets . . .

"Outside the US market, it is emerging as 'the poor man's iPhone' - a device with clunky and old-fashioned software, but much cheaper price, better camera quality, lower weight and far superior stand-by time," he said.

A lower-priced iPhone is widely expected and some of the "phone" and battery problems with the iPhone may be corrected with an expected new handset in June. But at least in theory this is the strategy for Nokia as it tries to get back into the US market. 


Here's a video demo of the 5800 in action.