MWC: Nokia goes behind Microsoft's back with Nokia X, X+ and XL Android smartphones

Analysts question wisdom of move as Finnish firm seeks entry-level market growth

BARCELONA: Nokia has unveiled three new smartphones running the Android platform at Mobile World Congress (MWC) on Monday, marking a major change in strategy from the firm, which is in the process of being acquired by Microsoft.

The Nokia X, X+ and XL represent a notable move away from the Windows Phone platform by Nokia, as it looks to boost its market share in the lower end of emerging markets, where the biggest growth is to be had.

As rumours had suggested, the Nokia X line-up features a heavily customised version of Google's Android operating system, much like that found on Amazon's Kindle tablets.

This means the Nokia X is not like an average Android phone, as it shuns access to Google Play in favour of its own Nokia App Store, which already has some notable apps such as Swiftkey and BBM.

In terms of specs, the Nokia X features a 4in touchscreen, a 3MP rear-facing camera and a dual-SIM slot. Nokia is still yet to announce full specifications for the device.

The firm added that the Nokia X+ will likely be more expensive, feature more memory and storage, and have a built-in micro SD slot while the highest-spec Nokia XL will feature a 5in display, a 5MP rear-facing camera and a front-facing 2MP camera.

In terms of availability, the Nokia X will be available in the coming weeks for €89. The X+ and XL are also due in the coming weeks and will cost €99 and €109, respectively.

Nokia CEO Stephen Elop said: "With the Nokia X, we benefit from the Android app ecosystem. However, we have built on this, with the device introducing new people to Nokia apps and services. It also means Android developers can bring their apps to the Nokia family in just a few hours.

"For developers, the Nokia X is a great way for developers to increase their revenues, and we will offer a bunch of different monetisation options."

The devices also come with Microsoft services pre-installed, such as Skype, OneDrive and Outlook, with Nokia touting the device as a way for Microsoft to reach a wider audience.

Elop said this should appease any unease at Microsoft: "The Nokia X takes people to Microsoft's cloud, not Google's cloud, which means Microsoft will be able to reach people it has never talked to, all around the world."

However, analysts have questioned the wisdom of the move. IDC analyst Francisco Jeronimo said that while it may help give Nokia some short-term gains, it raised many questions about its position in the market as the Microsoft deal closes.

"Nokia is not an independent company anymore. Whatever decision it takes, it will have an impact on Microsoft. This decision was probably taken before Microsoft's acquisition and under Steve Ballmer's leadership," he said.

"How long will Satya Nadella, the new Microsoft CEO, support a strategy that uses their main competitor's operating system to leverage its own business? When a company uses a competitor's product or service to grow its own business it can potentially weaken its position and image in the market."

Microsoft, though, seemed unimpressed by the move, with Frank Shaw, corporate vice president of Communications at Microsoft, noting that Nokia was still its own company at present.

"Today, we operate as two independent companies as required by antitrust law, and we will until the acquisition is complete," he said.

"Second, we're pleased to see Microsoft services like Skype, OneDrive and Outlook.com being introduced on these devices. This provides the opportunity to bring millions of people, particularly in growth markets, into the Microsoft family."

Shaw was keen to underline, though, that the Windows Phone platform was the only operating system that the firm would be supporting, seemingly ruling out any support for Android.

"Our primary smartphone strategy remains Windows Phone, and our core device platform for developers is the Windows platform."

Check back soon with V3 for our Nokia X hands-on review.