Nokia unveils two new color handsets

Nokia today introduced two new color GSM mobile phones aimed at the mass market, a cue that the Finnish handset vendor is trying to take its higher-end technologies to the mid-priced retail sector.

Both the 3150i color phone and the 3650 digital camera phone will be released before Christmas and are expected to retail for $200 and $450 respectively, before carrier subsidies. The move puts Nokia ahead of its competitors in releasing low-end color products, giving it a definite advantage during the holiday season. Analysts saw the announcement as good news and a sign that Nokia will probably make its sales and revenue goals for the year.

A note from UBS Warburg said both phones target Nokia’s “sweet spot,” the European GSM low-end consumers who account for 50% of the vendor’s handset sales. Except for Sony-Ericsson’s T300 color handset, no other vendor is scheduled to ship lower-end color phones this year, giving Nokia a clear competitive advantage, UBS Warburg said. The markets also embraced the new phone models, sending Nokia’s American depository shares on the NYSE up 6% to $14.19 before the markets closed.