Nokia Corp (NYSE:NOK) is making a comeback into the highly competitive smartphone business, with the launch of its first ever smartphone after years on the sidelines. Nokia 6 is the company’s latest innovation that it is hoping to use to capture market share in the multi-billion dollar industry.
Nokia 6 for China
The new Android smartphone will only be available in China for starters, as the Finish company moves to test the waters of the highly competitive business. The release of the smartphone comes after Microsoft ended its Nokia Venture and another Finish company, HMD Global, took over the licensing of the Nokia brand.
“The decision by HMD to launch its first Android smartphone into China is a reflection of the desire to meet the real world needs of consumers in different markets around the world,” said Nokia Parent Company in a statement.
Early indications are that the phone could fare well in the Chinese market given that it packs some high-end features on demand, at an affordable price. Nokia 6 comes with a 5.5-inch HD screen with two powerful 16MP and 8MP cameras, running on Android Nougat. For a price of $245, customers are being promised 4GB worth of RAM, 64 GB storage with the new 4G LTE smartphone.
The China-only release according to HMD is a strategic move, given that the country is home to over 550 million smartphone users. Should the phone attract a huge amount of sales there is no denying that the company will move to launch it in other global markets as the race for market share in the space heats up.
Nokia’s comeback into the smartphone business comes at a time when it has already lost its mark as one of the strongest competitors in the cell phone business. Competition in the space has edged a notch higher with the entry of new handset makers, which are already giving the likes of Nokia and Samsung a run for their money.
Africa and Asia are some of the markets that Nokia can focus on as it continues to work on its comeback. Developed markets are already saturated with high end products that could complicate the company’s entry into the highly competitive business. Given that, the Nokia 6 will cost $245 and should give the company an edge as it moves to gain sales in emerging markets.
Nokia finished the first week of the New Year little changed having edged higher by $0.01 on to close at $4.92 a share.