Nokia Launches Durable, Long-Lasting $20 Cellphone

Nokia has launched a $20 cellphone that comes with no service commitments. The handset lacks many modern mobile tech features but lasts up to 35 days before requiring a recharge.

Originally the Nokia 105 handset was designed for the developing world. However, the company is now expanding the device's release area to include Europe.

The phone boasts 12.5 hours of talk time or 35 days on standby. It's also designed to prevent dust or liquids getting into the phone through the keypad, something that may be particularly useful in some remote areas.

The rest of the phone is relatively basic, with only a 1.5-inch screen. It comes with some basic software tools, such as a calculator and calendar, but it's not possible to add third-party applications. (Source: nokia.com)

Information Updates Come Via SMS Texts

There isn't any Internet access or email functionality on the phone. However, depending on location, users can subscribe to information services that send updates via SMS text messaging.

Such tools have proved particularly useful in developing nations. For example, farmers can get weather updates to help with crop planning, or check current prices in multiple food markets to find the best place to sell their products without having to make lengthy journeys.

Other tools available on the phone include English language lessons and healthcare tips.

At only around $20, the phone is the cheapest handset Nokia has ever sold. Analysts believe Nokia will take in around $4 for each phone it sells at this price, making it definitely a volume business. (Source: bloomberg.com)

Nokia Hopes To Establish Brand Loyalty

Nokia believes that many of the people who buy this model will eventually upgrade to more sophisticated phones and may be more likely to choose a Nokia if they are happy with their experience.

Things may work slightly differently in Europe or if Nokia takes the handset to other developed markets. Some people may get the handset because it really is all they can afford, but others might get it because they have no interest in sophisticated features and simply want to be able to make calls and receive texts.

While such phones are already available in developed markets, they tend to be cheaply made by largely unknown companies. Nokia could win over some of those customers who recognize its name and believe it's more likely to have made a reliable handset for the low price.