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Nokia defends its market leader position in China by introducing low-priced smartphone
The world’s largest mobile phone manufacturer Nokia is defending its position as the market leader in China by offering its Chinese customers smartphones at more affordable prices than before.
According to Nokia CEO Olli-Pekka Kallasvuo, the company’s aim is to "democratise" the smart-phone market by selling lower-priced handsets at higher volumes.
On Tuesday Kallasvuo spoke in Beijing, where he helped to launch the new Nokia 6788, the company’s first device developed for TD-SCDMA - China's domestic 3G standard.
In the future Nokia plans to introduce even more TD-SCDMA handsets for the Chinese market. The Finnish company’s aim is to attract new customers, for example by offering extensive music services, which are very popular in China.
The 6788 smartphone launched in China features a Symbian S60 platform, a five megapixel camera, and a 2.8-inch QVGA display.
The aim is to allow anyone capable of writing software to develop new applications for the handset. Also for Nokia’s competitor Apple’s popular iPhones there are countless of applications available designed by the users.
Nokia is yet to reveal the new smartphone’s price. The handset has been developed in collaboration with the world’s largest telephone operator, China Mobile.
With the introduction of the lower-budget smartphone Nokia has made the "strategic decision to invest" in the Chinese TD-SCDMA standard, and will strive "for market leadership" in this technology, Kallasvuo said.
Mobile phone manufacturers are naturally interested in China because of the scale of the market there.
Of the 1.3 billion Chinese people, more than 700 million already use mobile phones.
This number increases by nearly ten million each month.
Nokia is the market leader in China, but its position is threatened particularly by the South Korean Samsung and partly also by certain Chinese manufacturers of low-budget handsets.
Samsung has estimated that it increased its market share in China by ten percentage points last year.
According to Kallasvuo, Nokia’s share of the global market was about 38% in the third quarter of this year, and the company’s share of the Chinese market was “in line with that”.
Various research establishments have estimated Nokia’s market share in China at just over a third.
According to Kallasvuo, in Nokia’s own estimates regarding the market shares, all possible factors - including the grey economy - have been taken into account