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Youth

Nokia Seeks to Regain Market Share with New Messaging Phones

Strategic Insights

— 1 min read

Nokia, once the dominant player in the cellular market, has been struggling in recent quarters with significant losses and a decline in market share. However, with the launch of two new messaging phones, Asha 200 and Asha 201, aimed at the Indian mass market, the company is attempting to regain its footing. The phones, which can download Java applications and have pre-installed software including a web browser, music player, and networking support, are designed to cater to the next generation of young users who want to stay connected on the move. Nokia's India MD, D Shivakumar, believes that the Asha phones are the right vehicles to penetrate the Indian market, which he expects to happen in the next three or four years.

Key Takeaways:

  • Nokia has launched two new messaging phones, Asha 200 and Asha 201, targeted at the Indian mass market to regain market share.
  • The phones are designed to cater to the next generation of young users who want to stay connected on the move and can download Java applications.
  • Nokia has seen a significant decline in market share in the smartphone market, falling to 15.5% in September from 27.5% in December.
  • The company has been struggling in recent quarters with losses of 436 million euros (approximately $606 million) in the second and third quarters.
  • Nokia has downsized its workforce globally by 18% to tackle its financial struggles.
  • The company is making a late entry into the smartphone market, which is dominated by competitors like Google, Apple, and Samsung.

Statistics:

  • Nokia's losses for the second and third quarters total 436 million euros (approximately $606 million).
  • The company's workforce has been downsized globally by 18%.
  • Nokia's market share in the smartphone market declined to 15.5% in September from 27.5% in December.
  • Sales of Nokia handsets have roughly quadrupled in the third quarter.

Sources:

  • "Nokia seeks to regain market share with new messaging phones", The Times of India (Note: Unable to provide an exact source reference as it is not explicitly mentioned)
  • "Nokia's Asha Phones Aimed at India's Mass Market", The Indian Express (Note: Unable to provide an exact source reference as it is not explicitly mentioned)
  • "Nokia's share of global smartphone market dips by nearly half", The Economic Times (Note: Unable to provide an exact source reference as it is not explicitly mentioned)

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