nokia 5000

Analysts think that Nokia’s emerging markets phones might leak into developed countries and that could help low-spending users upgrade their phones.

“This should be good news for helping operators in mature markets to encourage low-spending users to replace their phone and – hopefully – start using more advanced services.” Martin Garner, Ovum

Low-spending users have plenty of “free” phones to chose from right now, so it’s not clear why that would help. However, it would be naïve to think that these phones cannot leak outside of their intended markets. It the computer space, it has been demonstrated that low-cost computers aimed at emerging countries are generating an immense interest – because they are cheap and… “good enough”.

With phones, the difference is that carriers tightly control what gets sold or not.

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