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Considering the keen competition and the high penetration rates of smartphones in more mature markets, it makes sense for HMD to re-launch the classic Nokia 3310, according to industry sources.
The re-launch of the Nokia 3310 has its strategic significance, through which 2G users in emerging markets will get used to Nokia phones and brand, and therefore a sense of affinity for Nokia products may rise, said the sources.
HMD will benefit from the trend by ramping up its shipments of Android-based Nokia smartphones when the replacement demand for smartphones begins to accelerate in emerging markets, added the sources.
Taking the India market for example, the penetration rate of smartphones stood at 25% in 2015 and the ratio is expected to reach 50% in 2017, which means that there is room for development for feature phones in the market, indicated the sources.
Additionally, the penetration rates of smartphones in Russia is about 50% currently, below 50% in Mexico and Brazil, and even below 20% in some markets in Africa, said the sources, noting these are potential markets for HMD.
The new Nokia 3310 is priced at EUR49 (US$52), which is competitive as compared to US$20-30 FOB prices set for high-end white-box feature phones, added the sources.
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