Nokia drops features to lower cost of latest smartphone

IDG News Service - Nokia's Symbian-based 5250 phone is its cheapest touchscreen smartphone yet at €115 (US$145), but to get the price that low, Nokia had to ditch some of the features of its predecessor.

The 5230, introduced around a year ago, has a 3.2-inch display and support for A-GPS (Assisted GPS) and HSDPA (High-Speed Downlink Packet Access) mobile broadband at 3.6M bit/sec. At launch, the phone cost €149 before operator subsidies and taxes.

The 5250 is €34 cheaper, but users won't have a 3G connection and will have to find their way without the assistance of A-GPS. The phone's touchscreen is also smaller than that of its predecessor, at 2.8 inches.

However, the new phone comes with an FM radio, a free copy of Guitar Hero 5 Mobile and a music player on the home screen, according to Nokia. From the home screen, users can also access e-mail, Facebook and other social networks, it said.

Nokia is working hard to bring down the price of entry-level smartphones, in an effort to get its devices and software services, including the Ovi application store and music service, into the hands of more users, according to Geoff Blaber, an analyst at CCS Insight. However, to get to €115, Nokia has had to make some decisions to lower the price of materials, he said.

The low-cost smartphone isn't there to compete with high-end smartphones, but with mid-tier products based on proprietary operating systems from the likes of LG and Samsung in the prepaid segment and in emerging markets, according to Blaber. At the same time, Nokia is starting to feel pressure from Chinese phone vendors, which are pushing down the cost of smartphones based on Android, Blaber said.

Nokia expects to start shipping the 5250 in the fourth quarter.