By R.JAI KRISHNA
NEW DELHI—Nokia Corp., NOK1V.HE +0.30%struggling to regain ground in the competitive smartphone market, unveiled a $99 touch-screen smartphone for India and other emerging markets to help drive sales.
At a product launch event in New Delhi Thursday, Nokia said its Asha 501 will run on the new Asha platform.
The Finnish handset maker said the smartphone will initially run on a second-generation network, but it plans to expand the device for faster 3G services.
Nokia President and CEO Stephen Elop at a news conference at the Mobile World Congress in Barcelona in February.
Chief Executive Stephen Elop said the smartphone was built on the design inspired by the company's higher-end Lumia smartphone and is targeted at "young, socially inspired" people.
The smartphone has a 3.2 megapixel camera, weighs 98 grams and has a memory capacity of 4 gigabytes that can be expanded to 32 gigabytes. It comes in different colors including red, green, yellow and white, the company said in a statement.
Nokia, once the world's largest phone maker, has struggled to compete in the high-end smartphone market dominated by Apple Inc. AAPL +1.12%and Samsung Electronics Co. 005930.SE +1.81%Adding to its woes is stiff competition from Chinese manufacturers as well as other low-cost Indian phone makers such as Micromax Informatics Ltd.
Up until last year, the Finnish mobile company's last stronghold was India, but it is seeing increasing threat from Samsung in the country.
Nokia held a 26% share of the 170 million handsets shipped to India in 2012, with Samsung following closely behind with 22% of the market, data from Singapore-based mobile research firm Canalys shows.
In the fourth quarter, Nok