Nokia launches low-cost handsets in Africa

In the wake of forecasts that Africa's mobile phone subscriber base is set to expand 22 percent this year, Nokia has launched four low-cost handsets in the continent.

Nokia is battling for control of Africa's fast-growing, low-end phones market, in stiff competition with Motorola and Samsung.

The new handsets include models with entertainment and Internet access, voice recorder, FM radio and MP3 ringtones, according to Dorothy Ooko, the company's communications manager for East, Central and Southern Africa.

The Nokia 5000 and Nokia 2680 slide models feature MP3 ringtones, a digital camera and FM radio. The Nokia 7070 prism offers MP3 ringtones, a voice recorder and a hands-free speaker, while the Nokia 1680 classic has a camera and video recording features.

Ooko said the handsets were priced to ensure affordability. Motorola's low-cost handsets for the region are priced as low as €11 (US$16).

While Africa's first-time buyer market continues to grow, Ooko said the number of people seeking to replace their mobile phones with newer and advanced models is also increasing.

"In 2008, Nokia anticipates that for the first time, the number of replacement purchases in the emerging markets will exceed those of the first-time buyer," Ooko said via e-mail.

The new handsets will be shipped into the region at various times and with different prices.

The Nokia 5000 and 1680 classic are expected to ship in the second quarter with estimated prices of €90 and €50, respectively, before taxes. The Nokia 2680 slide and Nokia 7070 prism are expected to ship in the third quarter. The Nokia 2680 has an estimated price of €75 while the Nokia 7070 will cost €50.

Emerging markets account for the majority of first-time buyers of Nokia brands, according to Alex Lambeek, Nokia's vice president for the entry-category market.

Surveys recently carried out in Africa indicate that pricing remains a major obstacle to mobile telephony's growth.

The Global System for Mobile Communication Association estimates that 330 million people in Africa will own a mobile phone by the end of 2008, up from the current 270 million.