This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Nokia's New $99 Phone Could Mean Trouble For Microsoft

NEW YORK (TheStreet) - Nokia (NOK) has just announced a tiny new phone that could be a very big deal for them and disrupting to their competitors. It might turn also evolve into a formidable bargaining chip against Microsoft (MSFT) and Windows Phones.

The new phone is called the Asha 501 and it's part of their low-cost line of handsets designed to appeal to users in what is commonly known as "emerging markets." That usually means phones with very few features that sell at a very low price point. They chose to announced the handset in India - one of the world's largest emerging markets.

From what we can tell, this phone may be inexpensive for users to purchase but looks to be anything but cheap or ordinary.

Until now, Asha phones ran on Nokia's ancient Series 40 operating system. It's the lightweight software platform they introduced 14 years ago and has been installed in more than 1.5 billion Nokia handsets. The phone is fine for voice calls and SMS messaging but don't expect most modern-day smartphone conveniences.

Nonetheless, the new touchscreen Asha 501 is different, and enticing. It uses what Nokia is calling its Asha Software Platform - basically some Series 40 with a large dose of innovation from a software platform called Smarterphone from a Norwegian company they purchased in 2011.

The bottom line here is this new phone blurs the line between very basic feature phones and very expensive smartphones. It also gives Nokia the basis for some leverage when it comes to its dependency on Microsoft and their Windows Phones.

The Asha 501 isn't the ultimate new Nokia phone. Far from it. It has a tiny, 3-inch touchscreen. It weighs 3.5 ounces. Only a 3.2 megapixel rear camera without a flash. It has Wi-fi but only runs on 2G cellular networks. The large capacity battery can provide 17 hours of talk time and last up to 48 days in the standby mode. Best of all, the 501 is designed to sell for less than $100 without a contract.

Stock quotes in this article: NOK, MSFT, FB, GOOG, BBRY 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs