Microsoft Plans to Terminate the Manufacturing of Nokia’s Budget Phones

 

Microsoft is currently going through major reordering and organizational changes. The company sacked 18,000 people from jobs, all over the world, and axed the Nokia X Android smartphone for good. It is now planning to cut  or scale back significantly the Nokia Asha Series 40 smartphones and other budget devices.

Many of you might have expected the elimination of Nokia X Android smartphones from the market. However, the termination of entry level Nokia phones comes as a huge surprise since these phones have been quite profitable. The foundation of Nokia’s business was established by budget phones that kept the company alive during hard times. It seems evident that the new owner Microsoft is looking to scale down the production of budget phones in the favor of higher-end Windows phone devices.

Microsoft is looking to build its efforts on the growing momentum behind Windows Phone. It plans to significantly cut down the developer engagement activities related to Nokia X, Series 40, and Asha, and shift support to the maintenance mode. Microsoft is committed to support its existing mobile phone customers. It will ensure proper operation during the planned, controlled termination of services over the next one and a half years.

All mobile phones-related services and enablers will be moved into the maintenance mode. It simply means that there will be no new updates or features to services or any Mobile Phones platform as a result of these plans.

Regardless of its claims, the elimination of all entry-level phones will really damage the market of budget phones of Nokia. The customers of Nokia will have quite less options to choose from. The chances are that customers will move to Android’s cheap low-end smartphones. Unless Microsoft can scale down the prices on its other Windows Phone handsets, the persistent existence of mobile device legacy of Nokia looks very slim.

 

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