According to Reuters, Nokia is expected to introduce cheap basic phones as well as a lower-price Nokia Lumia model to fend off growing competition in the low-end market. The most affordable Nokia Lumia phone right now is the Lumia 620, priced at about $300 USD unlocked.

Analysts told Reuters that Nokia needs to protect its position in basic phones if it wants to survive. The average selling price of Nokia’s mobile phones was $41 USD in 2012, down from $46 USD a year earlier. How much lower can they go?

Nokia’s net sales of mobile phones fell 21 percent in 2012 to 9.44 billion euros, while sales of higher-end “smart devices” slumped 50 percent to 5.45 billion.

We’re expecting the announcement of new devices at Nokia’s press conference at Mobile World Congress. Let’s hope there are higher-end devices too like the rumored Nokia EOS and Nokia Catwalk. The event is just a few days away, so stay tuned.

Photo: rrriles