Nokia angles to regain lost ground with new smartphone

Nokia has partnered with Facebook and cellphone carriers to allow users on the Asha 501 phone access Facebook for free

Finish phone maker Nokia is turning to local application developers in a bid to stimulate sales figures that have been on the decline over the past few years.

Even as its recently released Lumia line of handsets continue to enjoy warm market reception globally, an onslaught from low cost Android-powered smart phones has eaten into Nokia’s market share.

Nokia is now looking to ramp up its revenues by targeting first time smart phone users and those making the transition from feature phones to low cost smart phones.

Smartphone sales for the once market leader fell 20 per cent in the first three months of this year with the phone maker reporting a $357 million loss and a 32 per cent loss in sales. To make matters worse for Nokia, a partnership with Microsoft to roll out the Windows 8-powered Lumia smartphone line failed to have the desired impact on users.

The launch of the Asha 501 last week is Nokia’s latest attempt to reclaim the market share it once held in feature phones before Android-powered smart phones became popular.

Speaking at the launch of the product in New Delhi India, Nokia’s CEO Stephen Elop was optimistic that the new Asha would be pivotal in turning the company’s fortunes around.

“The Nokia Asha 501 will appeal to 85 per cent of the world because it runs on the 2G platform and despite the growth in the smart phone market, the majority of users are still on feature phones and 2G networks,” he said.

Software developers

The phone which will begin shipping worldwide in the next two weeks will retail at $99 USD (Sh8,316) with users in developing countries forming the largest market.

To make the new phone more appealing to users, Nokia has entered into partnership with Facebook and cellphone carriers in several countries to allow users on the Asha 501 access Facebook for free.

Aside from that, Nokia is trying to appeal to software developers to help develop locally relevant apps to run on its new Asha platform which will power future Nokia Asha devices.  “We have created the Asha platform to drive the Asha 501 and through this we aim to make it easier for developers to make more money from their applications,” said Mr Elop.

Developers who write applications for the Nokia Asha 501 will reach all smartphones based on the new Asha platform without having to re-write code. Nokia projects moving 100 million of the new generation Asha smartphones over the coming years providing ample opportunity for developers to market their application.

“We’ve seen a tremendous increase in consumer demand for apps for our Asha smartphones, as witnessed by the growth of downloads in the Nokia Store,” said Marco Argenti, head of developer experiences at Nokia.

“Consumers expect quality apps at every price point and with the new Asha platform, developers will be incentivized to deliver those quality apps, previously found only on high-end smartphones, thanks to unprecedented volumes and reach opportunities through one distribution channel and a single platform.”

Nokia has further improved its partnerships with local cell phone carriers in order to improve the billing for apps downloaded from its store hence more money for both developers and carriers.

For developers in Kenya, this improves the ease of monetisation providing them increased incentives to develop and publish for Nokia.

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