Lumia 520 is a great example of what happens when quality is delivered in a beautiful yet competent package.It certainly disrupted the low-end smartphone market.
Nokia XL betters that package with 5-inch display size, 5 MP auto-focus camera with flash and comes packed with great app support which may get better with time. And in all probability it will be priced lower than the lowest price Lumia which obviously is Lumia 520. So, if marketed properly, probability is that it will disrupt not only Androids but lower-end of Windows Phone as well.
This brings us to the question of how Microsoft will play along. So, while Microsoft has expressed pleasure over introduction of Microsoft services like OneDrive, Skype to the bigger audience with Nokia X, its response about Nokia X’s existence is much calculated. It emphasized how Nokia D&S and Microsoft are still separate entities and Windows Phone will still remain the primary platform. There may be reasons for which Microsoft may like to wait and watch,
- It is natural that Microsoft may not feel comfortable about the idea of Nokia X disrupting low-end Lumia uptake, which looks a clear possibility.
- Without any licensing fee coming into picture, Lumia range may be able to touch lower price points than even Lumia 520, when Nokia’s D&S finally merges with Microsoft.
Nokia’s VP for Mobile Phone marketing, Jussi Nevanlinna has announced that even more Nokia X devices are planned and they can go deeper in terms of pricing.
I think the key word is ‘family’. We will be announcing more products in the family over the course of the next year, and the price range it covers will change to suit the markets. We will be taking Nokia X into even more affordable price points.
Microsoft may not be happy about devices like Nokia XL, though Nokia X devices with much lower prices may be welcome. It will be really interesting to see what kind of marketing support the Nokia XL gets from Microsoft, as in Q2 the MS-Nokia deal will be closed already.