Nokia’s New Phones Won’t Compete With Apple’s iPhone: Analyst

Nokia (NOK) is reportedly looking to re-enter the handset business, which it sold to Microsoft (MSFT) for roughly $8 billion in 2013. But one analyst said the new products won’t be competing with Apple’s (AAPL) iPhone. ‘The iPhone operates at the premium end of the handset market,’ said Daniel Gleeson, a London-based mobile technology analyst at IHS. ‘Instead, the new Nokia handsets will most likely be operating at the low cost end of the market, mainly in emerging markets, such as Africa, Latin American, the Middle East and Asia.’ Competing against Cupertino, Calif.-based Apple is a tall order, which sold 47.5 million iPhones during its most recent quarter - a 59 percent jump from a year ago. For Espoo, Finland-based Nokia, the move to re-enter a space it once occupied could bode well for its brand awareness. ‘Nokia still has a huge brand asset, especially in emerging markets where smartphone penetration isn’t high, like Africa and the Middle East,’ Gleeson said. ‘Nokia also has a lot of its own technologies and patents, which it can use to differentiate those handsets in those markets.’ TheStreet's Scott Gamm reports from New York.