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But price is not the only thing that counts. A recent survey of 77,000 potential consumers by Nokia found that reliability, durability, ease of use, relevant features and affordability, all affect first-buyers' choices.
Chinese farmers' craze for Nokia 1100 largely stems from its dust-proof feature and in-built flashlight. "Low income does not mean they demand fewer features," said Giles.
Ernst & Young pointed out that "battery life, dust-proof casings and FM radio functionality can act as differentiators in emerging handset markets".
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Nokia is now in talks with Chinese cellular operators to introduce call-time tracking to mobile phones to be used in rural regions. According to Nokia's survey, mobile phones are often shared among families or entire villages. The tracking system enables users to set a time or cost limit, automatically ending the call when the limit is reached.
But cracking the rural market remains a tough job for manufacturers as profit margins are much lower than those in premium models sold in big cities. Domestic brands have been dominating the rural market by offering cheaper models, with armies of sales assistants hawking the brands.
But "now they are losing appeal as foreign makers like Nokia and Motorola are expanding their presence in the rural market with even cheaper models", said David Li,CEOof New York-listed Qiao Xing Mobile Communication Co Ltd, which controls domestic handset maker CECT Telecom Co.
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