Nokia has historically always been a very strong contender in the lower priced handset market. One of its phones, the Nokia 1100, has sold over 250 million units to date and is the bestselling consumer electronic device ever produced. Nokia has a complete monopoly in the lower segment of the mobile phone market in several developing countries.
Unparalleled brand recognition
Nokia’s immense reach in the mobile phone market has allowed it to reach a level of brand recognition that is unparalleled in several parts of the world. For several people from developing countries, the word mobile phone is synonymous with Nokia. This consumer recognition has helped Nokia in promoting its smartphones along with its cheaper dumbphones.
Due to this brand recognition, Nokia is one of the biggest benefactors of brand loyalty. For several people, upgrading from a dumbphone to a smartphone means purchasing another Nokia. In the developing countries, where mobile phone reselling is common, people prefer to purchase Nokia handsets as they are the only ones with relatively high resale values.
Targeting the newer devices at owners of older Nokia phones
Nokia has advertised its phones to those who have owned its previous handsets, which may usually be dumbphones. As several people have already had the experience with Nokia’s cheaper sets and have experienced their ability to keep functioning after extended periods of time, Nokia markets itself as a producer of long-lasting phones with high durability.
This advertising means that people from low earning brackets are ready to part with their precious income for a better phone, especially if it from Nokia. If the smartphone would be from another company, the person may not think it is worthwhile to purchase the device as he would not really be sure if the device would last him long enough. And as people from lower earning brackets are less informed about other smartphones, they prefer to stick to their tested brand instead of taking chances.