Mobile phone company Nokia is to launch two cheaper handset models in an attempt to penetrate the Indian and Russian markets.
The move shows the increasing importance of developing countries, which offer companies billions of potential users at a time when sales are slowing in markets like Europe, where many people already own a mobile phone.
"In coming years, new growth markets will be the key driver for the mobile industry," Nokia chief executive Mr Jorma Ollila said at a news conference in Moscow.
"In fact, when we look at global subscription growth, 80 per cent of it will, in our opinion, come from new growth markets in the next five years."
Nokia said its 1100 phone model will gradually replace its current 3310 phone, which currently sells for around $80-$90 before subsidies, and be available around the world in the fourth quarter of this year.
The 2300, which will also have a monochrome display, will be slightly more expensive and will be launched in the Asia Pacific region at the same time. It will reach shops in Europe, Africa and the Middle East in the first quarter of next year.
While new markets offer the lure of billions of new users, there is a risk that simpler phones with lower selling prices will bring handset makers lower profit margins than the fancier models they sell in Europe and Asia.