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By Brenda Goh and Ritsuko Ando
LONDON/HELSINKI, May 14 (Reuters) - Nokia unveiled a lighter, metal model in its Lumia smartphone range,as it tries to catch the eye of buyers to close the huge marketlead of rivals Samsung and Apple Inc in thelucrative handset market.
The Lumia 925 is the latest in Nokia's range usingMicrosoft's Windows Phone software and will be sold for469 euros ($610) before taxes and subsidies through carrierssuch as Vodafone and China Mobile.
Nokia Chief Executive Stephen Elop has pinned the future ofthe loss-making company on Windows Phone, hoping to reverse adramatic drop in revenue over the last two years.
The phone weighs 139 grams, compared with 185 grams for theearlier 920 model, which some critics had said was too heavy. Italso utilizes a new smart camera mode, a photo editing functionwhich Nokia intends to introduce to all Lumia devices.
"Lumia 925 looks like a solid product and should be able toattract new customers who have considered 920 too bulky fortheir taste," said Nordea analyst Sami Sarkamies.
"One can think of Lumia 925 as a new version of Lumia 920that has been put on a diet to fit inside an iPhone-like frame."
Nokia has recently launched new products in the lower andmid-tier range to protect its position in emerging markets, butits success in the high-margin smartphone market will be crucialto its long-term survival.
The company unveiled the slightly heavier Lumia 928 for theU.S. market last Friday. It was priced at $99 after a rebate anda two-year deal with Verizon Wireless .
Both the Lumia 925 and 928 are targeted at the high-end,flagship segment, which accounts for 35 to 40 percent of thetotal global market, said Jo Harlow, Nokia's executive vicepresident for smart devices.
"Our goal is to have a complete portfolio across the pricerange," she told Reuters, adding that Nokia expects to seeaccelerated growth in sales of Lumia phones.
Sales of Lumia phones have grown in recent quarters, but at5.6 million in first quarter, they still account for only around5 percent of the market.
Research company Gartner said on Tuesday that Nokia lost 5percentage points of market share in the first quarter, fallingto 14.8 percent of all mobile phones compared to number oneSamsung's 23.6 percent share. Nokia held a 19.7 percent sharejust a year ago.
Nokia's announcement of the Lumia 925 came just days afterit unveiled the Asha 501, a $99 handset with a touch-screen andsome Internet access, including built-in applications for sitessuch as Facebook.
The Asha 501 is aimed at a growing, middle-class populationin emerging markets who like smartphones but can't affordhigh-end models.
"The mid and low end of the smartphone segment is where themost growth will be in the coming years," said FranciscoJeronimo, analyst at technology research firm IDC, adding thatApple and Samsung have already cornered the high-end market.
"The high end is a very tough segment to enter and tocompete in. You have to have huge marketing budgets."
IDC estimates that smartphones under $149 accounted for thefastest sales growth last year, with sales up 270 percent from ayear earlier. That compared with a 4 percent fall in the$300-499 price category.
Investors said the Asha 501 was a sign Nokia was payingattention to consumers who will soon be upgrading from basichandsets to more sophisticated phones.
Nokia has also recently started selling a lower-spec Lumia521, sold as the 520 in other markets, for under $150 at Walmartin the United States.
It launched a 15-euro basic phone earlier this year, aimedat first-time buyers, although analysts were less bullish aboutthis handset due to lower margins.
IDC's Jeronimo said that with new phones at various pricepoints, Elop had no excuse for weak sales in coming quarters.
Shares in Nokia were down 3.6 percent to 2.84 euros by 1310GMT, valuing the company at 11 billion euros.
