Nokia still needs a cheaper phone to compete with Android
Although one would think the Lumia 610 goes far enough to compete with low-end Android devices for emerging markets, according to Niklas Savander, executive vice-president at Nokia, covering Brand, Marketing, Sales, Supply Chain, Customer Care and Information Technology, they still need to go lower:
"We are competing with Android, Android is in many markets at the €100 price already, so that would suggest that if we are at €189 with the Lumia 610 we still have work to do when it comes to creating a lower-end first-time user smartphone."
That's certainly a tall order as the Lumia 610 already ditches things like gyroscope (compass?), ClearBlack, some RAM, CPU speed and more. Other areas where Nokia could reduce costs though would be to newer-but-low-cost SOC chipsets, even cheaper screens and overall leveraging of existing production lines.
When we heard Eric Schmidt, executive chairman of Google, speak at the Mobile World Congress last week, he mentioned how the sub-$100 smartphone will come next year, so clearly even Google has their eyes set on that milestone too. The question is will Nokia have to reduce features or will production of smartphone parts become cheaper to reach that point? More likely a combo of both.