Nokia, We Are in Tougher Battle

Jun 10 11:17 2011 olina lai Print This Article

Nokia abandoned hope of meeting key targets just weeks after setting them, blaming difficult conditions in China and Europe last week, what supports Nokia’s current condition

Last week,Guest Posting Nokia abandoned hope of meeting key targets just weeks after setting them, blaming difficult conditions in China and Europe. It is said that Nokia, the mobile phone giant now is facing a tougher time in emerging markets.

There are 3 reasons to support Nokia’s current condition.

Firstly, pressures coming from China’s larger rivals. These years, Asian manufacturers are increasingly turning to free Android software from Google, which is popular with operators and consumers in cut-rate markets. ZTE, the Telecom company, and its larger rival of Huawei Technologies that has been in the network equipment business, are aggressively muscling in on mobile devices. ZTE expects to ship more than 80 million mobile phones this year, up by a third from 60 million units last year, said He Shiyou in April, though Nokia has been able to rely on its brand and distribution chain across emerging markets, home to 1.7 billion mobile phone subscribers.

Secondly, pressures coming from other so-called no-brand manufacturers, and it is also the biggest threat comes from manufacturers that have effectively no name at all commented by one media report. Mediatek or Spreadtrum Communications, China’s largest mobile phone chip suppliers have controlled 45 percent of the market. Many small companies use their chips sets, which makes Nokia’s market share in china drops to 19 percent from 33 percent two years ago. Moreover, according to Gartner’s report, No-brand Chinese manufacturers have also expanded in Africa, India, Latin America and Russia in the past year.

Lastly, pressures from high-margin smartphone sectors such as Apple, Research in Motion and Google. These 3 technology giants have seized most market share in the high-margin smartphone field, only leaving the basic cellphone business as Nokia’s most valuable part, despite such filed is still popular among most users worldwide.

"Three years ago Nokia’s position in emerging markets looked impenetrable, but low-cost chip sets and growing scale has helped a number of Asian manufacturers to price aggressively and seize market share,” said Geoff Blaber, an analyst at the mobile communications research firm CCS Insight in London.

Obviously, it is now a tougher battle for Nokia to win under such low-cost and technology fast developing conditions.

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