Sales of Nokia’s low-cost Phones Increasing

With developed countries reaching the saturation point, mobile phone manufactures have to look to developing countries for increased sales. Nokia is selling more and more single-chip mobile phones in these nations. Sales numbers should reach into the tens of millions.

Single-chip phones are inexpensive to manufacture and are highly desired in developing nations, which often have a poor land-line infrastructure. Mobile technology is inexpensive to install and brings phone service to places that otherwise wouldn’t have telecommunications. Companies like Nokia sell single-chip phones at a low price and makeup profits by selling large numbers of units.

“We now have several single-chip phones in the market. It is one of the key factors in our cost competitiveness in cheaper phones,” Nokia Chief Executive Olli-Pekka Kallasvuo told Finnish daily Helsingin Sanomat.