7Euros is a big amount for the target market where Asha will sell (emerging markets). For example, India, Pakistan etc where Asha (hope in Hindi, the national language of India) is going to sell 7euros is more than 500 indian rupees, a comparatively large amount.

Edit: with a 500rs gap you're enroaching into cheap androids which have more advantages. the reason nokia still moves in these markets is due to its past reputation, build quality, amazing battery life and reliability/durability of the phone.
also in countries like India and Pakistan those who will buy these phones intend it for their children or rough and tough use. if they need directions, the numerous people you can find at all places are much better help than taking 5mins to type, search and get the GPS signal. Don't forget in these markets you have frequent diversions, constructions etc. whereby the navigation feature is rendered inefficient.