Nokia has always been known for their indestructible economic phones but not so much for their innovation. Fortunately, Nokia has not given up and is trying to adapt to the new environment and competitors in the mobile market with a new and cheap plan.

Nokia is Facing Failure in High and Low End Markets

Since Apple released the iPhone in 2007, their shares have quadrupled while Samsung’s shares have risen 154%. On the other hand, Nokia’s shares have dropped more than 80%, down to 15% this year to April.

Unfortunately, not only are iOS and Android trying to drive Nokia out of business. While Google and Apple focuses on the high-end phone market of smartphones that cost hundreds of dollars, Nokia’s biggest income comes from the low-end phone market. According to a Bloomberg article “of the 336 million handsets Nokia sold last year, only about 10 percent were smartphones. Basic models accounted for 31 percent of Nokia’s revenue, versus 18 percent for smartphones Network equipment made up most of the balance.”

It would have been all okay for Nokia, if it wasn’t for the Asian manufacturers, such as Huawei Technologies Co. and Samsung, that have been encroaching the basic phone market and challenging Nokia.

Recovery Effort with $20 Phone

Nokia 105 is splash proof, durable and made of strong stuffIn order to defend themselves against the new companies with more resources and money, Nokia has taken an interesting path.  Apparently, in order to fund themselves to better compete against the other companies in the mobile market, Nokia has released a $20 phone called Nokia 105 in Indonesia, and soon Europe.

Due to Nokia’s extensive mobile background, they are capable of providing phones made with cheap materials with features and services and turn a profit, which is what Chinese rivals cannot do at this point.

Nothing terrific, just a phone that comes with some preloaded games, a radio, flashlight, speaking clock and a color screen.

This new phone comes with:

  • Battery life of 35 days
  • Durable, dust and splash-proof keypad
  • SMS tools that teach English and provide basic healthcare advice

Nokia 105 Specifications and Picture

Nokia 105 being sold for $20 each in Indonesia and Europe

Dimensions Height: 107 mmWidth: 44.8 mmThickness: 14.3 mmWeight: 70 g Display Display size: 1.4 ”Display features: RGB Stripe
Photography Main camera sensor: No camera megapixels Power management Maximum 2G standby time: 842 hMaximum 2G talk time: 12.5 h

What’s good about Nokia 105?

For a very cheap phone with quality hardware, which is what I expect, it would be an excellent option for many reasons and all because of its price. The cheap price allows you to use it as long-term disposable phone or as a phone to be used when there is high risk of damage such as working in a field or running around in rain.

Oh, how could I forget? If you are going to be visiting another country and the country offers this phone… Well, you won’t have to worry about finding a spot to charge during your trip, don’t you think?

Missed Opportunity?

Alas, I am a little disappointed. I would have been ecstatic if Nokia could have released a low-end phone that is actually a smartphone. Many people would be all over it, even if Nokia raised the price up to $50 or $75. I think we are that far into the smartphone technology that we should be able to get some cheap phones that uses Android or Windows operating system, but I guess we aren’t ready when it comes to company politics.

Nokia declares that the $20 phone is made of strong stuff, and is built to take on the toughest tests life can throw at it.

Now, the question is… Is Nokia company made of strong stuff and will take on the tough test life is throwing at it, successfully surviving with the Nokia 105 plan?