Nokia has lost out badly to Apple Inc and Google Inc in the
smartphone market and last quarter also lost its position as the world's
largest volume cellphone maker to Samsung Electronics.
While fighting back with a new range of smartphones that uses
Microsoft software, the group is also eager to tap the booming market for basic
phones with full touchscreens.
Analysts at Strategy Analytics estimate that 105 million such
handsets were sold globally last year, with demand particularly strong in
emerging markets.
"Nokia urgently needed these products for emerging markets
where rival Samsung has had full-touch, low cost devices like the Star since
June 2009. Now Nokia needs to quickly make up lost ground with these new
products," Ben Wood, head of research at CCS Insight, said.
Nokia said on Wednesday its Asha 305 model would go on sale this
month for 63 euros ($79), excluding subsidies and taxes. The Asha 306 and Asha
311 models will go on sale next quarter for 68 euros and 92 euros respectively.
"In basic phones (Nokia's) second quarter might still be
difficult, but I expect a better third quarter, said Nordea analyst Sami
Sarkamies.
Previously Nokia has not had full touchscreen phones in
non-smartphone segments. The new phones will be competing with cheaper Android
phones from the likes of Huawei, ZTE and Samsung.
Shares in Nokia, which have lost over half of their value over the
past year, were 4.7 percent higher at 2.24 euros by 04:23 a.m. EDT (0823 GMT).
