Nokia Launches Its Cheapest Phone Yet for Emerging Markets
Thursday, November 5, 2009
Nokia has unveiled the 1280, a mobile phone for emerging markets that is 20 percent cheaper than its predecessor, the 1202.
The unsubsidized cost of the 1280 is €20 (US$30), which makes it Nokia’s cheapest mobile phone yet, according to a Nokia blog post. But the prize squeeze won’t end there: The concept of a €5 mobile phone doesn’t seem so far fetched, the blog post said.
The difference between mobile phone markets is the Western world and developing countries is stark. In the U.S. the average monthly revenue per user was approximately US$51 last year, compared to about US$6.40 in India, according to data from IE Market Research and Research and Markets. That doesn’t leave much room for local Indian operators to subsidize expensive smartphones. Instead users have to pay for the phone themselves, and in a country where the average annual per capita income is about US$805 that isn’t much. So phones like the 1280 are needed.