Nokia CEO Stephen Elop had several tough decisions to make when he came on board and replaced former chief executive Olli-Pekka Kallasvuo. Of course the biggest shift for Elop’s Nokia came in mid-February last year when the company confirmed that the burning platform had scorched MeeGo, and Nokia planned to dump its Linux-based mobile operating system for Microsoft’s Windows Phone OS. Nokia still went on to launch the N9, and it was widely believed that the handset would be the only MeeGo device from Nokia to ever see the light of day. According to a recent report, however, the Finnish vendor may have new MeeGo devices works.

Nokia currently has two entry-level MeeGo smartphones in development according to a recent report from Netbooknews.com. The site claims to have learned of the unannounced handsets “directly from Nokia’s Next Billion Group,” which is focused on bringing affordable smartphones to emerging markets. No other details surrounding the supposed devices were provided.

The move would be a curious one at best. Nokia is committed to Microsoft’s Windows Phone platform for high-end and mid-range devices, and BGR revealed exclusive details last year about a secret proprietary operating system Nokia has in development that will address emerging markets. The vendor also acquired cell phone operating system developer Smarterphone AS earlier this year in a move thought to be tied to the development of Nokia’s secret OS.

A Nokia spokesperson declined to comment.

While technology enthusiasts look forward to a number of high-end smartphone announcements vendors are preparing for Mobile World Congress next month, 2012 will see entry-level smartphones become more popular than ever. Market research firm Deloitte estimates that the number of sub-$100 smartphones in use globally will surpass 500 million this year, and by the end of 2012 there will be 200 million NFC-equipped devices in the hands of consumers. The firm also sees apps continuing to play a huge role in the mobile market, with the number of available apps set to top 2 million later this year. ”The number of apps available reached one million in December 2011 and will double again by the end of 2012,” Deloitte TMT analyst Jolyon Barker said in a statement. ”However, the proportion that are paid for remains small. Only a fifth of downloaded apps sell more than 1,000 copies and only a tiny proportion of unpromoted apps will ever become successful.” The firm’s full press release follows below.

Deloitte analyses top trends for the telecoms industry for 2012

17 January 2012

• The number of £65 “smartphones” in use will reach 500 million.
• The number of apps available will surpass two million by year-end 2012, double the total as of December 2011.
• The volume of data sent between devices via short-range wireless connections, bypassing the Web, will double in 2012.

The Technology, Media and Telecommunications (TMT) practice at Deloitte today announces its predictions for the telecoms sector in 2012, forecasting that the over half a billion low-cost smartphones (costing less than $100, or £65) will be in use by the end of 2012.

Jolyon Barker, global lead for Deloitte’s Technology, Media and Telecommunications Industry, comments: “This year’s predictions cover a range of topics, including the future for apps, demand for data and the rise of devices with near-field communications technology.

“The number of apps available reached one million in December 2011 and will double again by the end of 2012. However, the proportion that are paid for remains small. Only a fifth of downloaded apps sell more than 1,000 copies and only a tiny proportion of unpromoted apps will ever become successful.”

Simon Kerton-Johnson, lead telecoms partner at Deloitte, adds: “The number of devices with embedded near-field communications technology is set to soar to 200 million by the end of 2012. NFC – the transfer of small amounts of data over a very short distance – has been dominated by the ‘wave and pay’ notion of embedding a credit card into a mobile phone but the application of the technology is likely to have a wider reach.”

The $100 (£65) “smartphone” reaches its first half billion

Smartphones are typically considered high-end devices; yet by year-end 2012, at least 500 million $100 (£65) “smartphones” will be in use. These devices will have the look and feel of smartphones, sporting touch screens or full qwerty keyboards. $100 smartphones will have weaker processors, less memory, slower connectivity options, lower resolution cameras – but purchasers of these devices will be happy to trade off lower specifications for lower price. The rise of the $100 (£65) smartphone is comparable to the growth of the netbook, which offered a low-cost and low-powered alternative to standard laptops. The biggest demand for $100 smartphones is likely to be in emerging markets where Internet access is low but the desire for communication and information services is growing. Yet, the $100 (£65) smartphone could also appeal to users in mature markets where it could become a perfect teenage ‘starter’ phone. This will put pressure on the supply chain to cut the price of components but also presents a challenge for app developers as low-cost smartphone owners are less likely to want to pay for downloads.

So many apps – so little to download

The demands on the developer are increasing as the variety of smartphones and tablets increases. To reach a global target market, a developer may have to make 360 different variants which has almost called time on the part-time app developer. With so much choice on offer, app-store providers should consider ways to improve and assure the quality of the products on offer. Stores should look to differentiate by considering subscription models focused on different genres, or selected by editors, that would create ‘app bundles’. As smartphones go truly mass market, there will be a growing demand for local language, local content apps.

Web Bypass: delivering connectivity without the internet

The strain on networks, both fixed and mobile, is set to force more people to turn to short-range wireless connections to transfer data. Such technology has been pervasive before in the form of infrared and Bluetooth connectivity and is set for a resurgence in the form of web bypass – cutting out the need to connect to the internet at all – as the need for the quick transfer of data between devices and users grows. Roughly one per cent of all wireless data exchanged in 2012 will be between devices rather than routed over the internet, double the level of 2011. With telecoms companies balancing the need to invest in network improvement with the demands of customers for data capacity, web bypass will emerge as a third network option alongside fixed broadband and mobile for transferring information.

NFC and mobile devices: payments and more!

Many people remain uncomfortable with the notion of using a phone to pay for items and consumer perception about the security and battery-draining aspects of NFC need to be overcome. Even if 2012 turns out to be no more than a “transitional year” for mobile payments, the NFC chips will not go to waste. There are thousands of applications of NFC – from gambling, to games to healthcare – that could build up a head of steam over the course of the year, even if the media continues to focus on the ‘digital wallet.’

Global shipments of low-cost Android smartphones are expected to explode over the next four years. A new report from market intelligence firm In-Stat suggests that annual shipments of sub-$150 Android phones will reach 339 million units in 2015. In-Stat says that consumers in the market for smartphones with such a low unsubsidized cost only have one option — Android — leaving current (Symbian) and future (Nokia’s secret new OS) platforms high and dry. Even in 2013, however, In-Stat views fragmentation as an issue and says the spec requirements of newer Android builds like Android 4.0 Ice Cream Sandwich will keep it off low-end phones. Read on for more.

“The low-cost Android handset segment will cause some fragmentation in the Android platform,” said In-Stat Research Director Allen Nogee in a statement. “Most low-cost Android smartphones are likely to be released with Android 2.2 or 2.3, since these versions are a good blend of features with modest memory and processor usage. The Ice Cream Sandwich (Android 4.0) step-up in memory and processor demands makes this release less attractive for low-cost Android devices.”

In-Stat’s Less is More: The Worldwide Emergence of Low-Cost Android Smartphones report notes that this segment of the smartphone market will generally stick to EDGE networks in the coming years, and processors speeds are likely to remain at 600MHz or less, as processors in this range can be purchased from chip manufacturers for less than $10. The firm also notes that smaller smartphone vendors may also purchase components from the “gray market” to save on costs associated with the licensing fees, royalties and taxes larger manufacturers pay on their products.

As Nokia fights to regain its footing, the company recently abandoned Symbian and MeeGo to instead adopt Windows Phone in an effort to stabilize its declining smartphone business. But that move only addresses half of Nokia’s problem. A firm position in the big-margin smartphone market will be paramount to the vendor’s success moving forward, but the market for low-cost devices is still massive. Just as Nokia’s smartphone sales have spiraled downward in recent quarters, Nokia’s feature phone business been in sharp decline as well. Nokia took drastic measures in an effort to turn its smart device business around, and it now appears as though the Finnish phone maker also has big plans for its low-end phones. Read on for more.

BGR recently revealed exclusive details surrounding Nokia’s next-generation mobile platform, a Linux-based operating system currently being developed behind closed doors. The OS was later discussed in a job listing on Nokia’s website uncovered by IntoMobile. Nokia’s forthcoming OS — initially thought to be code-named “Meltemi,” though it may bear a different name — will allow the phone maker to offer devices with smart capabilities at rock bottom prices, extending well beyond the company’s potential reach with Windows Phone in emerging markets.

Nokia’s smartphone shipments plummeted 34% in the second quarter but feature phone shipments also took a hit, dropping 16% to 71.8 million units as channel sales declined in regions where Nokia has historically been an overwhelming force. And just as Nokia has been out-innovated in the smartphone market in recent years, the company has been slow to adapt in developing markets where share is being stripped by other big players and gray market handset vendors alike.

“Phones powered by Nokia’s next-generation entry-level operating system will not be smartphones at all, and the standings of Windows Phone with Nokia doesn’t change a bit,” Pyramid Research analyst Stela Bokun told BGR. “The new platform is on the one hand very much aligned with Nokia’s mobile phone strategy stated earlier in the year (‘connecting one billion to the internet…’), but it’s also a competitive response to the newest trend seen in the gray handsets markets in the emerging world.”

Bokun mentioned Africa specifically as a market where Nokia is being outclassed by gray market handset vendors, who have identified market needs that Nokia has not met. “First you had a total fiasco of the formal market vendors with none of them recognizing (timely) that dual SIM handsets would sell great in the developing world,” the analyst said. “So, Nokia, while being quite loud about its new dual SIM phone was de facto late with launching this type of handset in Africa.”

By the time Nokia finally launched a dual SIM device, Bokun added, gray market vendors had already made a significant dent in Nokia’s market presence.

“Now, Shanzhai vendors — often on MTK platforms — are producing quasi-smartphones, another potentially unmet demand segment,” Bokun continued. “This is where Nokia’s new platform will come into [play], providing a smartphone lookalike that will essentially be a feature phone to address the demand for these phones in the emerging world and, Nokia hopes, preempt competition from the gray market vendors as well as their main nemesis in this segment – Samsung.”

All eyes are on Windows Phone as we approach Nokia World 2011, where Nokia is expected to unveil its first batch of smartphones powered by Microsoft’s Windows Phone 7.5 “Mango” operating system. But Windows Phone is only part of the puzzle Nokia is now in the process of piecing together, and its upcoming proprietary OS will play an equally important role in helping Nokia re-establish its position as a global leader.

Google may have just unveiled its preliminary plans to bring contactless mobile payments to the U.S., but mobile payments in using various technologies are prime to blow up in several other markets around the world as well. Swedish wireless analyst firm Berg Insight on Thursday issued a report on mobile money in emerging markets, and the group believes adoption will skyrocket over the next four years. In 2010 there were 133 million people in emerging markets who used their cell phones to move money or pay for goods and services. That number is set to grow an average of 40% each year to reach 709 million in 2015, the firm believes. Over that same period, the total value of mobile payment transactions will balloon from $25 billion in 2010 to $215 billion in 2015. “In developing regions such as Africa the mobile phone will become the primary digital channel for people to conduct financial services in the coming years,” said Telecom Analyst Lars Kurkinen. “Financial institutions are beginning to realize the importance of mobile phones to reach new clients viewing mobile money services as high-priority strategic projects. Also mobile operators and third party service providers are ramping up their efforts to target the huge unbanked populations in emerging markets.” Hit the break for Berg’s full release.

Berg Insight predicts 709 million mobile money users in emerging markets by 2015

Gothenburg, Sweden – May 26, 2011: According to a new research report by Berg Insight, the number of mobile money subscribers in emerging markets is forecasted to grow from 133 million users in 2010 at a compound annual growth rate (CAGR) of 40 percent to reach 709 million users in 2015. The total value of mobile money transactions will simultaneously grow at a CAGR of 54 percent from US$ 25 billion in 2010 to US$ 215 billion in 2015. Asia-Pacific is expected to become the most important regional market, accounting for more than half of the total user base.

“In developing regions such as Africa the mobile phone will become the primary digital channel for people to conduct financial services in the coming years. Financial institutions are beginning to realize the importance of mobile phones to reach new clients viewing mobile money services as high-priority strategic projects. Also mobile operators and third party service providers are ramping up their efforts to target the huge unbanked populations in emerging markets”, said Lars Kurkinen, Telecom Analyst, Berg Insight. “The number of live mobile money services has thus grown at an explosive rate during the past two years and recently reached as many as 300 commercial deployments.”

The report also identifies mobile international value transfer as a high-growth market and an important revenue source for mobile industry players. Berg Insight estimates that US$ 16 billion worth of international money transfers will be received using mobile phones in 2015, up from less than US$ 1 billion in 2010. Berg Insight also forecasts that international airtime transfers will grow at a CAGR of 67 percent from US$ 130 million in 2010 to reach US$ 1.67 billion in 2015.

Images of what appears to be the unannounced Nokia C2-06 have been leaked by Hackintosh India. Judging from the photos, the C2-06 will be a new S40 device with a slider form factor that’s capable of accepting two SIM cards at the same time. A dual-SIM phone is a good option for frequent travelers, or for two people that want to share a single device with two phone numbers. The device appears to have a low resolution touchscreen as well as a slide-out full alphanumeric keypad. Given the lack of amenities like Wi-Fi or 3G, we suspect this Touch and Type phone will likely be launched in emerging markets. Hit the jump for two more images.

[Via Unwired View]

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As much success as Nokia has had — and still has — in emerging markets, it wouldn’t be a stretch to assume the Finnish company’s lineup is already jam-packed full of durable handsets. That assumption, at it were, would be wrong. Say hello to the company’s first water and dust resistant handset, the Nokia 3720. With IP54 certification, the 3720 will also be shock resistant if and when it drops (wink, wink) some time in September. Beyond that, our guess is that we’re looking at a pretty inexpensive handset that will run S40 and never make it to this side of the pond. Tears of indignation or shrugs of indifference?

[Via IntoMobile]

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Nokia on Tuesday introduced six new mobile phones and two new services that target emerging markets. The phones will include the 7100 Supernova and the XpressMusic 5130 and will retail for €25 to €90 ($32 to $115 USD). The first handset to hit the market in late 2008 will be the Nokia 7100 Supernova, a slider with a touchscreen and 1.2MP camera. Following the Supernova will be the XpressMusic 5130, Nokia’s low-cost music phone which is slated for a Q1 2009 release. The remaining four phones are standard candy bars and include the Nokia 2323, Nokia 2330, Nokia 1202 and the Nokia 1661. The Nokia 1202 claims the title as Nokia’s lowest priced mobile phone to date coming in at a mere €25 ($32 USD). A phone is useless without supported services and Nokia is set to launch new services that aim to bring low cost email and educational services to the masses. Nokia’s Mail by Ovi will deliver mobile email and Nokia’s new Life Tools will deliver agricultural information and multilingual education services designed especially for rural and small town communities via SMS. The Mail by Ovi service will be available globally on all S40 handsets by the end of 2008 and the new Life Tools is expected to go live in 2009.

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