Is the Nokia 130 Tough Enough to Be a 1100?
Yesterday, Microsoft unveiled the Nokia 130 — a basic, non-touch 2G handset intended for developing markets. The Nokia 130 comes in single SIM and dual-SIM variants, and is expected to retail for about $25. It has an audio and video player, Bluetooth connectivity, FM radio, torch and 1.8-inch TFT display, but no camera. The device runs a version of Series 30, Nokia’s legacy interface for basic phones which, by some metrics, is one of the most used mobile platforms ever.
One of the most notable features of the Nokia 130 is its battery life: the phone lasts up to 36 days in standby (26 days for the dual-SIM version). Infrastructure gaps remain in many parts of the world and charging continues to be challenge, so smartphones that require charging after a few days are impractical devices for these regions. The Nokia 130 will initially be sold in China, Egypt, India, Indonesia, Kenya, Nigeria, Pakistan, the Philippines and Vietnam. Microsoft also said that the Nokia 130 could make a good back-up phone for families in other regions.
The Nokia 130 is reminiscent of the Nokia 1100 and Nokia 1110, considered to be the best-selling consumer electronics products in history. Introduced in 2003, more than 250 million units of the Nokia 1100 were sold, and about the same number of the Nokia 1110 were shipped after its introduction in 2005. The 1100 family of devices were designed for use in rural areas, with dust-proof keypads and robust build, and the handsets featured language support for countries across Asia and Africa.
Microsoft executives stated that they plan to continue to manufacture basic devices as a way to reach the lower segments of the market. The Nokia 130 is a 2G device but uses GPRS to connect to Microsoft cloud services like Outlook and OneDrive. It appears that the strategy is to create stickiness to Microsoft services, but it would be very optimistic to think that a halo effect can be achieved with such low-end devices for price-sensitive markets. The upgrade path to low-end Windows Phone devices would be a long one for many of these subscribers.
Microsoft continues to hunt for ways to bring its mobile platform and services to a wider audience, but CCS Insight doubts that success will be found in the device upgrade cycle of users in emerging markets. Microsoft could create goodwill by connecting society’s next — and perhaps final — billion, but there’s otherwise little logic for the company to remain in the low-margin, low-ASP basic phone business. It’s a mismatch: the market for entry-level phones is best suited to local players. For Microsoft, getting back to basics means something very different.
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