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Nokia to focus on budget handsets

Nokia's new Meltemi mobile OS
Nokia going cheap and cheerful

Nokia is reportedly working on a new Linux-based operating system called Meltemi for its popular feature phones.

Smartphones may be all the rage in parts of the world such as Europe and the US, but feature phones still account for two thirds of global mobile sales and Nokia is the biggest manufacturer out there.

Nokia's more basic feature phones currently run its own Series 40 OS and there are now more than 1.5 billion Nokia handsets running this software worldwide.

Stop, hammer-temi

Industry sources have told Reuters that Nokia is working on a replacement for the Series 40 operating system, code-named Meltemi.

Meltemi will be built on a Linux-based software platform and is focussed on arriving on the more advanced feature phones, potentially bridging the gap between feature and smartphones.

Not so smart

Nokia stills lags behind in the smartphone arena and after dumping its own Symbian and MeeGo smartphone operating systems the Finnish firm has stuck its eggs firmly in the Windows Phone basket.

Nokia wants to take on the low-end smartphone market in 2012 stating: "We plan to introduce and bring to markets new and more affordable Nokia products with Windows Phone in 2012, such as the Nokia Lumia 610."

Could Nokia be onto a winner as it looks to strengthen its lucrative feature phone dominance with the new Meltemi software, while re-focussing its efforts on its smartphone range with an aim of nailing the budget end of the market?

Let us know if you think Nokia can turn it around, in the comment box below.

From Reuters