Nokia, the world's number one mobile phone maker, has entered the free mobile music market with the launch of its first touch-screen device the Nokia 5800 XpressMusic handset. The device will start selling the device for $395 which is about half the price of its competitors products.
The aggressive pricing of the handset is no doubt going to attract many customers, but perhaps an even bigger lure is that Nokia will offer their phone with 'Comes with Music' bundle. Nokia has signed up all the major record labels and even many of the independent labels and the 5800 handset will come with a subscription 'free' access to all its tracks.
Nokia has made a smart play by absorbing the labels royalty costs within the price of the handset it has put itself ahead of the competition with their pay-per-download and subscription models. This will certainly appeal to new customers especially when they compare services and value for their money.
Nokia is adding to its device manufacturing and entering the service industry and not only could it threaten Apple's iTunes and Sony Ericsson, but with the built-in 'free' music option it could be yet another twist that will completely change the music industry.
Nokia's music offer will differ from others on the market since users will be able to keep all the music they have downloaded during a 12-month subscription period. Nokia said it will also offer 18-month package together with operators in some specific markets.
The new device will be launched in the UK, the world's third largest music market. Carphone Warehouse will be the exclusive carrier and the inaugural model, the Nokia 5310, will go on sale for £130 on October 16.