Nokia Buys Smarterphone to Make its Dumbphones Smarter

Nokia may have bet its future on Microsoft’s Windows Phone platform when it comes to smartphones, but it is still working on its feature phone offerings, which make it the top mobile phone manufacturer worldwide.

Apparently, Nokia purchased a Norwegian company, Smarterphone, which has created an operating system that brings smartphone features and user experiences to budget feature phones with slow processors and smaller displays. Smarterphone has been selling its technology to many OEMs and ODMs which use its platform to power their devices.

The acquisition was revealed when Ferd Capital, an investor in Smarterphone, revealed it in a press release. It had invested around 6.5 million euros in Smarterphone. The purchase price wasn’t revealed.

Nokia, which traditionally had the greatest market share in feature phones, has seen itself slide in recent times, even in its strongest territories. Samsung recently overtook Nokia as the smartphone market leader in India, and is slowly clawing away at its feature phone market share too. It is also under attack by Chinese manufacturers which are targeting the low-end feature phone market.

With Smarterphone, Nokia is planning to make its feature phones slightly more appealing, and even win back some of its lost market share. Even though feature phones may not be as lucrative as smartphones in terms of profit margins, they offer a huge revenue opportunity, especially in emerging economies like India, China and Africa. After all, everyone can’t be Apple.

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