Nokia aims to make Windows Phone cheaper, undercut Android

Nokia has laid out its plan for recovery from a turbulent period and, perhaps surprisingly, it involves cheaper Windows Phones.

During an open Q&A conference call - held on the same day the Finnish manufacturer said it will cut 10,000 jobs by the end of 2013 - Stephen Elop, CEO, spoke of how Nokia planned to close the gap on other operating systems.

"We are absolutely going to make Windows Phones cheaper than the Nokia Lumia 610,” said Elop. "We need to compete with Android aggressively."

Nokia’s approach is in contrast to the Apple business plan which has resisted any urge to cater for a more affordable market, pricing the likes of the iPhone and iPad at a premium.

Android however, as found itself in a range of different calibre handsets from entry-level through to high-end devices such as the Samsung Galaxy S III.

"The fundamental challenge is breaking through the strengths that Android and iOS have in the retail environment. (That is the) Heart of the problem," added Elop, although some may argue that retail is less of a problem and platform desirability is larger.

Though Nokia refused to talk timeframes, the manufacturer aims to secure 10 per cent of the Windows Phone market share by targeting specific markets. 

"We’re going to focus on investing more resources into fewer markets. USA, China, UK and other European countries. We’re putting countries into tiers."

Nokia lost its position as the biggest mobile phone manufacturer to Samsung earlier this year, with the company admitting that big changes were needed for it to reclaim the number one spot.

The Nokia Lumia 610 is currently available for around £130 and it looks like we'll be seeing cheaper handsets arriving. But will anyone want them?

Is price currently a barrier to adopting Windows Phone? Let us know in the comments below...



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