Here I am expecting that Nokia knows what they are doing in general. The company has announced that their strategy is "The next billion" ie. they want to bring Internet into a billion pockets more. It means cheap mobile devices for the masses.
Browsing the internet does not require a smartphone. The relevant "platform" here is a web browser, in mony cases it is Opera Mini preloaded in Nokia handsets. Nokia is also improving the natiive browser in their Series 40 phones all the time.
Other killer "apps" in mobile, SMS, MMS, voice, messaging, music player, camera, location etc. do not require a smartphone. And in any case the definition of a smartphone is volatile. The original iPhone was not a smartphone, and it became a success because of the simplicity. Featurephones are usually simpler than "real" smartphones. Simplicity makes a mobile desirable in some cases.
My conclusion is that Nokia is fighting the mobile handsets and services war, and smartphones are only a piece in this bigger game. I am expecting, in addition to some cheap devices, that Nokia will improve Series 40 offerings. Probably we will see capacitive Series 40 full touch and touch & type devices this year.
