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Cheap smartphones killing mid-price phones

16.04.2009
Nokia's iPhone-wannabe 5800 XpressMusic smartphone is , analysts say. But Nokia as a whole is expected to report a steep drop in profits for the first quarter of 2009. While the company still dominates with a 40 percent market share, it is expected to see its lead erode while BlackBerry maker Research in Motion gains ground.

The reason: Buyers are shifting en masse away from Nokia's and seeking slightly pricier low-end smartphones that are more iPhone-like with Internet capability, more processing power, better screens, and full QWERTY keyboards.

The 5800 is Nokia's star for now. It sells for less than an iPhone in Eastern Europe, the Middle East and Asia, where it outsells Apple's superphone. Nokia may even match Apple's worldwide first-quarter shipments with more than 2.5 million 5800s sold, according to some forecasts.