Nokia acquires feature phone OS maker Smarterphone

Nokia (NYSE:NOK) has acquired Smarterphone AS, a developer of software optimized for feature phones. Financial terms were not disclosed. Smarterphone investor Ferd Capital announced the transaction, which was completed in November 2011.

The Smarterphone operating system promises a smartphone-caliber user experience across more basic feature phone devices and is designed to run on limited-resource hardware. Smarterphone (previously known as Kvaleberg) also touts greater flexibility for tailoring handset software to different markets. Partners include Taiwanese manufacturers Compal Communications and Wistron NeWeb.

Although Nokia has made substantial bets on smartphones running Microsoft's (NASDAQ:MSFT) Windows Phone operating system, the manufacturer has vowed to continue building lower-end feature phones, with an emphasis on emerging international markets. In September, The Wall Street Journal reported Nokia is building a new Linux-based OS to advance its feature phone aspirations.

Some analysts have questioned the longevity of the feature phone business, however. Low-cost, feature-rich smartphones running Google's (NASDAQ:GOOG) Android operating system are becoming increasingly commonplace, with Chinese manufacturer Spreadtrum poised to introduce Android devices priced below $50.

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