Nokia shows off inexpensive phones for developing markets

Nokia unveiled two new inexpensive mobile phones targeted at developing markets. The new phones will be produced in "very high volume." Nokia said that the cheaper of the two phones, the 1110, will retail for €65 ($80). The 1110 has a black-and-white screen and replaces the best-selling 1100. The other phone, the 1600, has a color screen and an estimated price of €85. Both phones have a new user interface that Nokia claims will allow illiterate people to more easily use them.

Developing markets are the new growth area for wireless. Most analysts expect the wireless market to reach 3 billion users by 2010, with much of the growth coming from emerging markets. Carriers in these markets need cheaper phones in order to help spur adoption of service. Nokia is not the only vendor rushing to fill this need. Motorola has said it plans to launch phones that will sell for as little as $40 each.

For more on Nokia's new low cost handsets:
- see this story from The Wall Street Journal (sub. req.)

PLUS: Kyocera Wireless shows off a low-cost BREW handset with a color screen and a speaker phone. Article

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