I just returned from the Mobile World Congress in Barcelona, a monster event with 70,000 plus attendees that puts the ITU Telecom World events to shame. No wonder ITU’s Hamadoun Toure was introduced at the Ministerial Program as being a good friend from GSMA’s sister organization. We talked policy, but the real game was the exhibition. NYT reports one of the more significant piece of news to emerge: The new handsets, which the company introduced at the Mobile World Congress industry trade show in Barcelona, reinforced Nokia’s strategy of aiming at the lowest-priced but fastest-growing segment of the market. The Nokia 105, the company’s new basic, entry-level phone, will sell for 15 euros, about $20.
For the thousands of young people in emerging Asia wanting to break into the apps market, perhaps an opportunity? But the hundreds of thousands of apps that run on Apple and Android devices will not work on phones like the Lumia 900 that use Microsoft’s Windows Phone software. And many developers are reluctant to funnel time and money into an app for what is still a small and unproved market. So Microsoft has come up with incentives, like plying developers with free phones and the promise of prime spots in its app store and in Windows Phone advertising. It is even going so far as to finance the development of Windows Phone versions of well-known apps — something that app makers estimate would otherwise cost them anywhere from $60,000 to $600,000, depending on the complexity of the app.
Strong sales for Nokia’s Lumia smartphone line based on Windows OS has changed perceptions: Analysts are expecting Nokia to rapidly reassert its relevance in the smartphone market, which it had largely to itself before the 2007 introduction of Apple’s first iPhone. Over the next 12 months, Nokia will expand its smartphone market share more than sixfold, to 12.2 percent, overtaking Research in Motion, the makers of the BlackBerry, according to I.D.C.
Nokia is big in emerging markets, very big. But marginalized in the smartphone segment. Now the long shot to change that: abandonment of Symbian and adoption of Windows. Why not an open system, one wonders. Microsoft’s operating system software dominates the PC industry.
The NYT reports a possible alliance that appears to be a reaction to the rise of Android. Shares of Nokia, the mobile phone market leader, climbed for a fourth day on Thursday amid speculation that the company may be poised to announce a software alliance with Microsoft designed to revive its struggling U.S. smartphone business. Nokia’s shares have risen more than 4 percent since Monday when an analyst, Adnaan Ahmad of Berenberg Bank in Hamburg, urged the Nokia chief executive — and former Microsoft executive — Stephen Elop, to form an alliance that would put Microsoft’s Phone operating system on Nokia’s advanced smartphones.