Nokia planning on leading the Chinese phone market with
the use of Windows Phone
To make their mark in the phone market once again, Nokia will start to sell a new range of smartphones
using Microsoft software this April. Since the past year, Apple and Samsung have been leading in the
numbers and Nokia has definitely felt this lead.
China has become one of the hottest growing markets for smartphone makers, with Apple Chief
Executive Cook also visiting Beijing at the same time for talks with government officials amid problems
for the firm ranging from labour issues to a contested iPad trademark.
Nokia's move will also be an important test for the Windows Phone, which has so far had limited appeal
although Nokia, the world's largest cellphone maker by volume, has put all its eggs in the Microsoft
basket, dumping its own smartphone software platforms last year.
Nokia Chief Executive Stephen Elop unveiled two models based on the Lumia 610 and Lumia 800
cellphones but designed for Chinese networks, which will go on sale through China Telecom, the
nation's third largest carrier.
"This is an encouraging step into the burgeoning China market," said Geoff Blaber, analyst at CCS Insight
Nokia said it would take its whole line-up of Windows phones to the Chinese market during the second
quarter. Sales chief Colin Giles said Nokia planned to eventually sell its Windows phones through all of
China's telecom carriers.
"Quite a lot will happen in China already in the second quarter," said Sami Sarkamies, analyst with
Nordea in Helsinki.
Shares in Nokia rose 3.6 percent to 4.14 euros, also boosted after Sweden's Swedbank lifted its rating on
the stock to "buy" from "neutral".
Nokia's share of the Chinese smartphone market - the largest market globally - fell to 30 percent last
year from 70 percent in 2010 as it lost ground to Apple, Samsung and local players, according to
researcher Strategy Analytics.
Microsoft has the full backing of Nokia for its Windows Phones, but is struggling to get equal support
from other handset makers, such as Samsung, which are clearly focused on their Android offerings.
There have been dramatic changes to Microsoft’s share of the smartphone over the years. It had only 2
percent last quarter from 3 percent last year and 13 percent four years ago, Strategy Analytics said.