Nokia and Microsoft hope the new model will help them take market share from Apple's iPhone and others running Google's Android software.
Nokia and Microsoft announced plans Monday to accelerate the sale of smartphones running Windows software by adding a lower-cost version to their lineup and drastically expanding the sales network around the world.
At an industry event here, Nokia presented the Lumia 610, which at EUR 189, or $250, will cost 30 percent less than its predecessor, the Lumia 710. It also announced a global market version of the Lumia 900, a Windows phone it already plans to sell for AT&T's new high-speed network in the United States.
Microsoft said it planned to open local-language online stores that would sell Lumia phones, applications and services in 28 countries, including China, by the end of March. The companies announced their plans at the opening of the Mobile World Congress, the telecommunications industry's largest annual convention, which runs through Thursday.
Nokia, the global market leader in mass-market cellphones, and Microsoft, the software giant, are underdogs in the smartphone business, where both are fighting for relevance and a market foothold. The two companies announced their alliance one year ago, and within eight months, produced their first joint phones.
But they are still playing catch-up in an industry now dominated by Apple, the leading smartphone maker, and Samsung, the No.2, whose product line relies mostly on models that run on the Android operating system from Google.
Terry Myerson, a Microsoft vice president who oversees strategy, marketing, development and sales for the Windows phone business, said the new markets and lower-priced phone would increase the sales potential for Nokia Lumias at least 60 percent.
"This will enable many, many more people, especially in China, to be able to experience Windows phones," Mr. Myerson said. "This is just a big year for the one billion Windows consumers globally, not just for Windows phone users but all users of Windows."
Neil Mawston, an analyst at Strategy Analytics, said the new Lumia models would help Nokia and Microsoft by doubling the size of their Lumia Windows portfolio.
"More products plus more distribution can often equal more market share," Mr. Mawston said. "The lower price point is encouraging because Nokia needs to slow the decline in Symbian" -- its own operating system, which is being phased out -- "and replace it with Microsoft. Anything that supports that has to be good." But Mr. Mawston said the additions, while encouraging, were only a small step along the way to restoring Nokia's lost market position in smartphones, an industry segment that it dominated before Apple introduced the first iPhone in 2007. "Nokia is taking baby steps forward in the right direction," he said. "I think it is incremental rather than revolutionary."
In October, Nokia began selling the Lumia 800, a high-end phone with a unique, time-saving touch screen interface, in parts of Western Europe and Asia, and the Lumia 710, a midlevel device, in the United States and abroad. The Lumia 710 had retailed initially for EUR 270.
Mr. Myerson, of Microsoft, said the lower price of the Lumia 610 had been made possible by incorporating a new, low-cost microprocessor developed by Qualcomm that uses only 256 megabytes of dynamic random access memory, or DRAM, compared with many smartphones that use chips requiring four times as much memory. Less memory storage means lower cost, Mr. Myerson said, without any loss in performance.
At the opening of the convention, Nokia and Microsoft said they still had no details on the U.S. introduction date for the Lumia 900, a phone Nokia announced in January for AT&T's Long Term Evolution network, and is now expanding to Canada. In the rest of the world, Nokia in April will begin selling the Lumia 900 for networks running an enhanced 3G standard called DC-HSPA.
Mr. Mawston said the lack of details on the date was disappointing.
Jo Harlow, the Nokia executive vice president for smart devices, said details on the U.S. date for the Lumia 900 would come soon. She praised the collaboration with Microsoft, saying that both companies had been energized by the growing success of the Lumia line and were confident of future growth.
In December, Microsoft's Windows phones, which are made by Nokia, Samsung and HTC, had only 1.7 percent of the global operating system market.
Phones running Android, Google's operating system, had 51 percent of the market, followed by Apple, with 24 percent, Nokia's Symbian with 12 percent, and Research In Motion's BlackBerry, with 9 percent, according to Strategy Analytics.
Besides the product announcements, Microsoft also introduced its first Skype application for Windows phones. Microsoft completed its acquisition of Skype, the leading Internet communications company, last October for $8.5 billion. Nokia also announced a new, free mass transit route-planning application that will let smartphone users enter a desired route in 150 cities and receive real-time updated bus, train, tram and subway connections.
Nokia, a Finnish company, also announced a new e-reader application for smartphones, which includes access to an extended library of digital books. Ms. Harlow said research showed that consumers are increasingly reading on smartphones, despite screens smaller than e-reader devices.
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