Top global mobile phone maker, Nokia, launched seven new handset models on Monday to plug the remaining holes in its product range and help the firm to protect its market share in the Americas.
Nokia lost market share in 2004 due to a lack of attractive mid-priced camera phones and folding clamshell models and was forced to slash phone prices.
The Finnish firm rebounded in April, reporting better-than forecast January-March earnings, and recovering to a position in which it produces one in every three mobile phones sold around the world.
Analysts welcomed the new models, most of which featured a slide-open design and cameras with resolution of up to 2 megapixels. Three of the new models will run on CDMA technology, used in about 45 percent of handsets in the United States at the end of 2004.
Nokia said in April its main sore spot was in North America and Latin America, where Motorola of the United States and Samsung of Korea were chewing into its market share.
“With their new models, they’ve filled out their product portfolio by targeting fairly sensible segments like CDMA and 3G, rather than going for sensational products, which is good,” said Nick Ingelbrecht, Gartner’s Asia Pacific telecoms analyst.
“Especially the new 6280 3G phone is interesting. I think it will do well, it’s highly featured, targeted at the mid-range, mass market consumer,” he added.
Nokia spokeswoman Arja Suominen said she was confident Nokia would exceed its target of launching 40 new handset models in 2005. Including the models unveiled on Monday, Nokia has 33 new handsets so far this year, she said.
The new models will hit the shelves in the third and fourth quarter.
“The direction is the right one and the speed is good,” said Mandatum Stockbrokers’ analyst Erkki Vesola.
CDMA models welcomed
Together with a 3G phone and three GSM phones, Nokia also introduced three CDMA models -- the high-end 6265 2-megapixel camera slide phone and two entry-level models, the 2255 clamshell handset and the 2125 candy bar-shaped phone.
“Improving CDMA portfolio is always good,” said Hannu Rauhala, an analyst with Finland-based Opstock Securities.
“For the American markets you need to have CDMA phones,” said Rauhala, who has an “accumulate”-rating for the stock.
CDMA or code division multiple access is the world’s second-most common mobile phone technology after GSM or Global System for Mobile communications.
Nokia’s executive vice-president and general manager for mobile phones, Olli-Pekka Kallasvuo, said the firm was committed to growing its CDMA mobile business, particularly in the Asia Pacific region and its biggest market there: China.
“The growth prospects on the CDMA front are extremely encouraging. The CDMA market is expected to grow at pace with the overall handset market and the global CDMA handset volume is expected to increase by 10 to 15 percent year-on-year in 2005,” he told a gathering of telecoms industry participants.
Nokia expects the region to account for one-third of the total CDMA handset volumes by year-end.
Speaking at Nokia’s annual mid-year press event in Helsinki, the group’s strategy head Tero Ojanpera reiterated the company’s target for a global 40 percent market share, but did not put a timestamp on it.
“In 2005, 15 percent growth is our estimate, and in some (ways) this might be conservative,” Ojanpera said.
