Nokia announced several low end phones for emerging markets. These will be pretty similar to the current phones available, both in pricing and features. However there is one additional feature that will be key, email!!
Email so far has been limited to people who can afford a pc, and an internet connection along with the logistics cost associated with it. In India the number of people who CANNOT afford the above is quite large. The introduction of email over Ovi on these phones promises to get a much larger % of people on the email band wagon. Nokia’s support of various local languages makes it even more effective. People buying this phone can very quickly setup a username@ovi.com email account. The only thing they need is the phone and phone connectivity which is extremely widespread even now.
While Nokia will make money on the devices, I believe the long term play here is more strategic. Nokia is creating a platform that will allow other companies to target the bottom of the pyramid. It would be safe to predict that over the next 6 -12 months you will see multiple content and ad providers signing on to target this segment.
On a side note: Nokia is also launching Ovi (finnish for door) as its internet service brand. This again is interesting, as it is another step in Nokia’s metamorphosis from a device only company to a services company as well. Does this signal Nokia’s intention of being in the carrier segment later on? More on this in another post.
