Monday, February 27, 2012

Nokia pins hopes on cheaper Windows smartphone

BARCELONA, Spain (AP) — Struggling cell phone maker Nokia kicked off the world's largest mobile phone trade show Monday by unveiling a new low-cost Windows smartphone that operators could give away free to customers, and another aimed at snap-happy consumers demanding better photo quality.

Chief executive Stephen Elop told reporters at the Mobile World Congress in Barcelona that the new phones — a low-price euro189 ($254) smartphone that runs on Windows software and the , a handset with a high-resolution 41 megapixel camera — demonstrate "the actions necessary to improve the fortunes of Nokia."

"With great products for consumers, I think the rest will fall into place," Elop said.

In many countries, cell phone companies subsidize the sale of smartphones to customers who sign contracts. The low price of the new phone means their out-of-pocket costs would be low, even if they give the handset away.

But shares of Finland's Nokia Corp. were down more 6 percent to euro4.07 ($5.45) in Helsinki Monday afternoon after the announcements, erasing gains made Friday on investor hopes that Nokia would map out bolder plans to claw back market share. Learn More..

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