US-based software giant Microsoft, the new owner of Nokia’s mobile devices business, will target the $50 billion affordable handset market to restore lost glory of a firm which once was the world’s largest handset maker.
Before being acquired by Microsoft, Nokia had lost a considerable part of its market share to Samsung and Apple as it struggled to position itself among the fast changing needs of consumers. Nokia had partnered Microsoft in 2011 to bring out the Lumia range of smartphones, based on Windows Phone operating system (OS) of the Redmond-headquartered firm. Windows Phone is already the fastest-growing ecosystem in the smartphone market and according to research firm IDC, it was the third biggest OS in fourth quarter of 2013.
“With the Nokia mobile phone business, Microsoft will target the affordable mobile devices market, a $50 billion annual opportunity, delivering the first mobile experience to the next billion people while introducing Microsoft services to new customers around the world,” it said in a statement.
Low-cost handsets (sub Rs 5,000 category) and smartphones (especially sub Rs 7,000) from the stables of Asian handset makers like Huawei, ZTE, Micromax and Karbonn have been driving the growth in emerging markets of Asia and Africa.
In India, the smartphone market stood at 44 million units shipped, up from 16.2 million in 2012. The overall phone market stood at close to 257 million units in 2013, up 18 percent from 218 million units in 2012, according to IDC data.
Asked if the brandname of new phones would be changed, Microsoft in an emailed reply to PTI said it has “licensed the Nokia brand for Mobile Phones for 10 years, as well as for the purpose of marketing Nokia branded smart devices for a limited time”.
Analysts are of the view that Nokia is a big brand in India and Microsoft would want to leverage that and innovate on top of it.
“Nokia has a strong portfolio of devices across price points and of smartphones. We hope that Microsoft will continue to play across the spectrum, both high and the low-end as far as prices are concerned,” IDC Senior Market Analyst Manasi Yadav said.
They are expected to continue with the Asha range as it is very popular in India and other markets and also comes at affordable price points, she added.
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