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Sun, Feb 26 2012 Nokia unveils cheaper Windows smartphone Tweet Share this Email Print Related News Alliance forms web-based rival to Android, Apple 2:32am EST HTC bets on cameras, music to recover smartphone mojo 1:35am EST HTC eyes recovery with new smartphones Sun, Feb 26 2012 Sony returns to smartphones with new models Sun, Feb 26 2012 Telcos squeezed as consumers go mad for mobile Web Fri, Feb 24 2012 Analysis & Opinion Christie wants to cut taxes while the cashbox is empty Essential reading: Romney to explain tax plan, AIG to take tax breaks, rising stakes for Japan’s sales tax, and gas taxes drop Related Topics Tech » Media » Related Video Nokia unveils cheaper Windows smartphone 4:45am EST Nokia's President and CEO Stephen Elop attends a news conference during the Mobile World Congress in Barcelona February 27, 2012. Nokia has unveiled a new, cheaper smartphone using Microsoft's Windows Phone software, targeting a wider market for its new range of smartphones. The GSMA Mobile World Congress, representing the interests of the worldwide mobile communications industry, will take place from February 27 to March 1 in Barcelona. Credit: Reuters/Gustau Nacarino By Tarmo Virki BARCELONA | Mon Feb 27, 2012 7:46am EST BARCELONA (Reuters) - Finnish mobile phone maker Nokia unveiled a cheaper smartphone using Microsoft's Windows Phone software on Monday, aiming to win back market share by targeting a wider audience. Nokia last year dumped its own smartphone software in favor of Windows Phone to step up its fight against rivals such as Apple's iPhone, but the high prices of its phones have been a major weak point. Nokia said its new Lumia 610 model would carry a price tag of 189 euros ($250), excluding subsidies and taxes, when it goes on sale next quarter. That compares with around $600 for the iPhone and other high-end smartphones. "The 610 takes Nokia's Lumia portfolio to an encouraging new price point in its pursuit of cheaper Android rivals," said Ben Wood, head of research at CCS Insight. Investors, however, were unconvinced the new model and pricing would do the trick, and Nokia shares were down 7.0 percent to 4.02 euros by 1237 GMT. Analysts noted that Asian handset makers such as Huawei and ZTE were coming out with even cheaper smartphones for closer to $100. "I had hoped for a slightly lower price range. Maybe the markets were a bit disappointed with the price, which was quite high," Inderes analyst Mikael Rautanen said, adding the shares had spiked on Friday in anticipation of the event. LACKING UNIQUENESS Nokia also announced a global version of its high-end Lumia 900 phone and unveiled a new top-of-the range cameraphone 808, which comes with a 41 megapixel camera sensor, as well as three more basic models. The move comes over a year after Chief Executive Stephen Elop compared Nokia to a "man standing on a burning oil platform" and teamed up with Microsoft to take on Apple and Google's Android phones. Wall Street and industry analysts say that although the latest Windows phones could be worthy competitors to Apple's iPhone and top-of-the-range Android handsets, the devices lack unique qualities to make their sales take off. Microsoft's share of the smartphone market fell to just 2 percent last quarter, from 3 percent a year ago and 13 percent four years earlier, according to Strategy Analytics. In addition to its struggle in high-end smartphones, Nokia also faces an increasing threat from Asian manufacturers. Analysts say both Huawei and ZTE are set to grab more market share globally in 2012, as they shift their focus from basic phones to smartphones. Huawei and ZTE are now selling smartphones running on Google's Android operating system, attracted to the higher margins the market provides. Both companies made new handset announcements at the same trade show, the Mobile World Congress in Barcelona. ($1=0.7428 euros) (Additional reporting by Terhi Kinnunen in Helsinki and Bill Rigby in Seattle; Editing by Will Waterman and Mike Nesbit) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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