Saturday, October 4, 2008

Nokia 5800 to Miss Christmas in Most Developed Markets

Nokia's challenge to Apple's iPhone will go on sale in seven countries in Europe, Asia and the Middle East this year, but will not hit the Christmas shopping season in most developed markets.

It seemed that Nokia has been encouraged by Apple, Samsung Electronics and LG Electronics, which have already rolled out touch-screen cell phones over the last two years, mostly in developed markets. However, the touch user interface makes such adjustments more complex than for other types of phone.

The Nokia 5800, which is the first touch-screen cell phone from the world's top cell phone manufacturer, will go on sale in Spain, Hong Kong, Taiwan, Russia, India, Indonesia and the United Arab Emirates by year-end. The Nokia 5800 will cost US$387 before operator subsidies and taxes, considerably cheaper than the Apple’s iPhone.

According to analyst of the Strategy Analytics, Neil Mawston, Nokia has competitively priced its Nokia 5800, and it seems that the Nokia's competitive advantage is in emerging markets. Moreover, the research firm expects Nokia to ship more than 10 million touch-screen cell phones next year. However, JP Morgan analyst Ehud Gelblum hoped that the Nokia 5800 would be in cell phone stores in developed markets by Christmas.

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