Finnish mobile phone maker Nokia unveiled a cheaper smartphone using Microsoft's Windows Phone software on Monday, aiming to win back market share by targeting a wider audience.
Nokia last year dumped its own smartphone software in favor of Windows Phone to step up its fight against rivals such as Apple's iPhone, but the high prices of its phones have been a major weak point.
Nokia said its new Lumia 610 model would carry a price tag of 189 euros ($250), excluding subsidies and taxes, when it goes on sale next quarter. That compares with around $600 for the iPhone and other high-end smartphones.
"The 610 takes Nokia's Lumia portfolio to an encouraging new price point in its pursuit of cheaper Android rivals," said Ben Wood, head of research at CCS Insight.
Investors, however, were unconvinced the new model and pricing would do the trick, and Nokia shares were down 7.0 percent to 4.02 euros by 1237 GMT.
Analysts noted that Asian handset makers such as Huawei and ZTE were coming out with even cheaper smartphones for closer to $100.
"I had hoped for a slightly lower price range. Maybe the markets were a bit disappointed with the price, which was quite high," Inderes analyst Mikael Rautanen said, adding the shares had spiked on Friday in anticipation of the event.
Nokia also announced a global version of its high-end Lumia 900 phone and unveiled a new top-of-the range cameraphone 808, which comes with a 41 megapixel camera sensor, as well as three more basic models.
The move comes over a year after Chief Executive Stephen Elop compared Nokia to a "man standing on a burning oil platform" and teamed up with Microsoft to take on Apple and Google's Android phones.
Wall Street and industry analysts say that although the latest Windows phones could be worthy competitors to Apple's iPhone and top-of-the-range Android handsets, the devices lack unique qualities to make their sales take off.
Microsoft's share of the smartphone market fell to just 2 percent last quarter, from 3 percent a year ago and 13 percent four years earlier, according to Strategy Analytics.
In addition to its struggle in high-end smartphones, Nokia also faces an increasing threat from Asian manufacturers.
Analysts say both Huawei and ZTE are set to grab more market share globally in 2012, as they shift their focus from basic phones to smartphones.
Huawei and ZTE are now selling smartphones running on Google's Android operating system, attracted to the higher margins the market provides.
Both companies made new handset announcements at the same trade show, the Mobile World Congress in Barcelona.
India will buy at least 8,000 Spike missiles and more than 300 launchers in a deal worth 32 billion rupees ($525 million), the source
As pro-Russian separatists control more than half of the coal mines in Ukraine, government looks elsewhere to supply coal demand.
Business executives warn of an investment slowdown, while the government wants companies to diversify sales.
The money will be used to develop infrastructure, power distribution and business cooperation, Tanzanian President Jakaya Kikwete said
If Russian oil giant Rosneft's request for $49 billion from the government is not met, Russia could face larger budgetary and revenue problems, say experts
China launched the first stage of an Asian development bank, in what is widely seen as a challenge to U.S.-backed international banks.
Aid agencies are tentatively also giving away cash and letting refugees decide for themselves what they need. The money is being wisely spent and rarely wasted
The research firm IHS estimated this week that ISIL militants were producing about $2 million worth of crude oil a day before recent U.S.-led air strikes.
The conflict between Turkish and Greek Cypriots on the island continues over the ownership of the hydrocarbon reserves in the exclusive economic zones off the shore of the island
Aeroplane maker company Boeing sells plane parts to Iran, as part of easing the sanctions and first step since 1979
OPEC's second-largest producer, Iran is normally among the first members of the oil producers' group to call for supply cuts to support prices.
The 21-member Asia-Pacific Economic Cooperation (APEC) bloc said they would advance structural reforms to unleash new sources of growth.
Ukraine needs to pay its previous debt to Russia by the end of the year and pay in advance for getting new volumes of natural gas
The loss of Khafji's 280,000 barrels per day of Arabian Heavy crude will be felt more in Kuwait, which has far less spare output than its neighbour
Under Lufthansa's proposals, pilots would still be able to retire early, but the age would gradually increase to 60 from 55.