Nokia targets emerging markets with Android phones

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BARCELONA, Spain (AP) — Nokia is targeting emerging
markets with three low-cost smartphones that use Google’s Android
operating system rather than the Windows Phone software from Microsoft,
which is about to buy Nokia’s phone business.
Nokia will ditch
many of the Google services that come with Android, which Google lets
phone makers customize at will. Instead, the new Nokia X line announced
Monday will emphasize Microsoft services such as Bing search, Skype
communications and OneDrive file storage. Its home screen sports larger,
resizable tiles resembling those on Windows phone.
"More and more
people are buying smartphones for less that 100 euros," said Stephen
Elop, Nokia executive vice president, as he presented the new phones at
the Mobile World Congress in Barcelona, Spain. "That sub-100 range is a
massive opportunity for us. According to analysts, it will grow four
times as fast as rest of smartphone market."
The Nokia X is on
sale immediately for 89 euros ($122). The Nokia X+ will cost 99 euros
and the Nokia XL will cost 109 euros, with both going on sale in early
March.
The Nokia X and X+ both have 4-inch screens, but the X+
offers an SD card. The XL has a 5-inch screen and a better 5-megapixel
camera and a 2-megapixel front-facing camera.
Elop said all three
phones will be "available broadly around the world, starting in growth
markets." The aim is to make the Nokia X a bridge to high-end Windows
smartphones under the Lumia brand.
They won’t be available in the
U.S., Canada, Korea and Japan in part to avoid competing with Lumia
phones, which cost hundreds of dollars in the U.S. without subsidies
from phone carriers.
Elop said that the use of Android on these
phones in no way means Nokia is shifting away from its work with Windows
and Microsoft, which is buying Nokia’s phone business and patent rights
in a 5.4 billion euro ($7.3 billion) deal expected to be completed next
month.
Once the No. 1 maker of cellphones, Nokia has been
struggling to keep up with the iPhone and devices running Android.
Nokia’s smartphone revenue fell 29 percent in the recent holiday quarter
compared with a year earlier. And even as competition intensifies for
high-end smartphones, Nokia has been hit by competition from cheaper
made by Chinese and other Asian companies.
Nokia announced two even cheaper phones on Monday, also expected to go on sale in early March:

The Nokia 220 is meant as a starter phone for 29 euros ($40). It will
have Facebook, Twitter and some games already installed, but users won’t
be able to add apps.
— The Asha 230 will offer more options for
apps. The 45-euro ($62) phone is meant for people who are not yet ready
for the Nokia X. It comes with a touch screen, but lacks the power and
versatility found in smartphones.
For a first-time smartphone
experience, Nokia Corp. is pushing the Nokia X. Because it uses Android,
it will be able to run most Android apps. However, app developers may
have to tweak some of their software because the phone doesn’t have key
Google services.
For instance, location services will have to be
designed for Nokia’s Here mapping software rather than Google Maps.
In-app payments will have to be tweaked to allow billing through mobile
carriers rather than credit cards, which many people in emerging markets
lack.
Jussi Nevanlinna, vice president for product marketing,
said Nokia is trying to lure those who might have been drawn to the
large offering of apps available on Android. Instead of having them
hooked on Google services through Android, he said, Nokia could steer
them to Microsoft services with a customized Android system.
Both
the Asha and the Nokia X will have a feature called Fastlane. It
remembers your favorite apps and services and offers quick access, along
with recent notifications, on a single screen that is one swipe away
from the home screen.
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