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Tuesday 25 February 2014

Nokia X series of Android smartphones unveiled

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Nokia has unveiled its first three Android smartphones after several turbulent years that saw the Finnish manufacturer lose its top spot in the mobile market as Google's free OS became the biggest mobile software in the world.

All three Android phones by Nokia - X, X+ and XL - run on a 'customized' version of Android operating system and will not have access to Play Store.

This means that those looking for a number of popular Android apps will still not have access to those. The company has also not innovated much by way of design for the new range and carried over the monobody design of its Lumia series in the new Android smartphones.

Nokia XL, the biggest of the three new smartphones, has a 5-inch screen, 768MB RAM, 5MP auto-focus camera with LED flash on the back and 2MP front camera.

On the other hand, Nokia X and X+ have 4-inch screens and 3MP fixed-focus cameras, said former Nokia CEO and current executive vice-president of devices and services Stephen Elop while unveiling the devices. Nokia X will have 512MB RAM, whereas X+ will feature 768MB of RAM.

All three devices will run on a 1GHz dual-core Snapdragon processor and have dual-sim functionality, access to 3G networks as well as display resolution of 800x480p. Nokia will offer a 4GB microSD card free with X+ and XL smartphones, but not with the entry-level Nokia X.

As expected, Nokia has preloaded the X, X+ and XL smartphones with Microsoft's cloud services like SkyDrive and One Drive, instead of Google's software, which may prove a dampener for some. The company is offering 10GB of One Drive storage for free, along with one month of free unlimited Skype calls to landlines and mobiles.

Some of the apps pre-installed on the devices are Here Maps, Nokia Mix Radio, Facebook, Skype, BBM etc. Users can download apps from the Nokia store, or choose to sideload apps directly from the web.

Interestingly, the home screen of Nokia's three Android smartphones is heavily influence by that of Windows Phone operating system and features Live Tiles. The company has also included FastLane multitasking solution, which it debuted with the revamped Asha series, and Glance Screen in the new smartphones.

Nokia announced that Nokia X will be available immediately in Europe for 89 euros, whereas X+ and XL will hit the stores in early Q2 2014 for 99 and 109 euros respectively. However, it added that the three models will hit markets like India, Africa, Middle East, Asia Pacific and Europe first, without indicating the price range for these markets.

Elop said that Nokia, set to be acquired by Microsoft soon, will encourage app ecosystem for the Nokia X platform. It will offer developers different monetization methods in emerging markets.

Admission of failure
The strategy shift underlines several missteps made by the Finnish company since Apple launched its iPhone in 2007.

Nokia was caught between a rock and a hard place - committed to using Microsoft's Windows Phone software, but needing Android software to reach more cost-sensitive customers, CCS Insight's head of research Ben Wood said.

"That a soon-to-be Microsoft-owned company, which is the owner of the original operating system, is moving to Android is almost an admission of failure," he said.

Rather than a complete about turn, Nokia's adoption of Android for the Nokia X appears to be a tactical reversal, albeit one that amounts to throwing the cat among the pigeons.

The need for apps
Nokia's product marketing vice-president Jussi Nevanlinna said the number one requirement from customers was access to Android apps.

"Our fans often times tell us 'We love your hardware, we love your products, but we also love our Android apps'," he said. "Can you make something happen so the Android apps magically run here?'"

"Asha has failed to deliver the volumes they needed to be competitive in the low-cost smartphone space, while Android remains completely rampant," CCS Insight's Wood said.

However, the fact remains that Nokia will face an uphill battle even after launching a phone running Android, the most popular mobile software in the world. In emerging markets like India, the company will have to take on the challenge from smartphones by local manufacturers. These devices, unlike Nokia's, have full access to Google's app market.

The absence of popular Android apps is likely to be a concern for all buyers. For example, Flipboard - a popular news app - is still unavailable for the three-year-old Windows Phone 8 operating system. Of course, users have the option of sideloading apps, but few know about this option and even fewer are expected to exercise it due to worries about malware and malfunctioning.

A lot will depend on Nokia's pricing strategy. If the Nokia XL - whose 5-inch screen will be a big draw for many buyers in countries like India - is priced at approximately Rs 10,000 (going by the price of 109 euros), it will face heavy competition from the plethora of devices by the likes of Micromax, Karbonn and Lava.

Smartphones costing Rs 10,000 by such manufacturers have similar specifications, but have full access to Android apps, making these more attractive to many buyers.

Moreover, this price conversion does not include local taxes, which will push the tag further. This means Nokia will face stiff competition from the likes of Motorola's Moto G, which offers far better specifications.

However, it is unlikely that Nokia will price the XL smartphone above Rs 10,400, since its entry-level Lumia 525 costs as much, and the X range of phones will be positioned below the Lumia series. This may mean Nokia taking a hit in terms of profits.

The OS landscape
Global smartphone shipments grew 41% annually to reach nearly 1 billion units in 2013, according to market research firm Strategy Analytics. Android phones from dozens of handset makers accounted for almost four out of every five smartphones sold, or 781.2 million units.

In the past year, sale of Apple iPhones grew 13% and the company shipped 153.4 million units worldwide with its current marketshare stands at 15%, making it the second largest smartphone platform after Android.

Microsoft was a distant third in marketshare terms, shipping 35.7 million units worldwide with its Windows Mobile software platform, but still struggling to gain traction in the low-tier and premium-tier smartphone categories, Strategy Analytics said. Android and Apple hold sway, respectively, in the low-tier and premium-tier segments.

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