Nokia targets China with cheap handsets
The world’s biggest handset maker is trying to get bigger and it’s next target is the nascent markets across the developing world. The company on Thursday announced three new handsets for the biggest emerging market on the planet, China.
Nokia estimates the number of mobile subscribers to grow to three billion by 2008. As around 80 percent of this growth will come from emerging markets, China’s importance cannot be underestimated, the company said. Nokia “expects that Asia-Pacific and China will account for 50 per cent of the next billion subscribers”, it said in a statement.
The models the company hopes to crack the Chinese market with include the Nokia 1112, 2310 and 2610, which are all expected to arrive on Chinese shelves in the April-June quarter.
The phones are expected to cost between Eur 45 ($54) and Eur 75 without subsidies and taxes. The 2610 can accept emails while the 2310 has an FM radio.
The move into China is an important one for Nokia which has enjoyed significant revenue growth from emerging markets. Although cheaper phones may reduce the average selling price of its handsets, that describes a key reason to strike the market early and establish itself as a player there.
Liz Hall, principle analyst at Telecoms.com’s parent, Informa Telecoms and Media said: “China is forecast to generate over 330 million new mobile handsets sales over the next three years. A large proportion of these sales will come from low-revenue generating users who have a limited budget to spend on a new handset. To retain its number one position in the Chinese handset market against competitors such as Motorola and its ultra-low cost handsets initiative, Nokia is going to have to sacrifice some of its margin in order to defend its overall market share.”
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