Nokia Rivals Motorola in China's Mobile Phone Market

Home>>Business

Last updated at: (Beijing Time) Wednesday, July 10, 2002

Nokia Rivals Motorola in China's Mobile Phone Market

DISCUSSION

CHINESE

SEND TO FRIEND

Among the CDMA mobile phone manufacturers in China, Motorola is the only enterprise funded by foreign capital. If Nokia, the robust competitor, also tries to plant itself in it the market pattern of the CDMA mobile phone will soon take on another look.

The latest report for the first quarter of 2002 issued by Nokia reveals that the mobile phone overlord occupies some 38 percent shares of the world market, still in a position of ruling the roost. However, the Chinese mobile phone market, which has already been turned into a battlefield for mobile phone big-shots to seek for hegemony, has for a long time been heartache for Nokia, in which it has always been an inch shorter than Motorola, its rival.

Make a change of the CDMA market pattern

Senior vice-president of Nokia Asia-Pacific region told the reporter with no reserve: "For Nokia to make CDMA mobile phone in China, it is still in its investigation of the market. And we'll make our decision as to whether we are going to put a hand in it when the CDMA market develops to a size in China."

The fact that Nokia wants to put a hand in the Chinese CDMA market has touched Motorola to its vulnerable point. Among the CDMA phone manufacturers in China Motorola is the only one of foreign capital. Though the Bird of Ningbo is ranked at the fifth in output and sales of the phone sets and followed by Kejian and Hai'er. However, the influence is no match for Motorola so far as the brands' comparability is concerned.

If Nokia, the global and bulky overlord of the mobile phone market is going to put a hand in, it will soon rouse a change of the CDMA market pattern in China and the status of Motorola will be challenged.

"Deep-plough" strategy strikes out sparks in China

To carry out each other's "deep plough" strategy in China Motorola and Nokia are often out with brilliant schemes and witticism.

At the end of last June, when Nokia made a big show at Shanghai International IT and Telecommunication Expo, Motorola announced at China's Sixth Software Fair in Beijing that within 5 years, Motorola was going to make its China Software Center a "Software Giant" by an investment of 0.9 - 1 billion in the US dollars.

Starting from May 1, 2002 onwards, Nokia divided its mobile phone sector into nine business centers of independent accounting, each being charged with the business of the specific market. In this action, the boldest and the most creative was the setting-up of an extra-low price portable phone sector, dedicating to the markets in Russia, India and China. The establishment of the sector indicated in acquiescence its neglect of the markets in the past.

However, Motorola, its old rival announced in advance that it would go all out to offer value-added service and had a plan to extend its service network further to medium and small cities. To put a brake on the rival's action Nokia was out with a quick reaction. Its vice president said Nokia was going to stage a stronger assault on the medium and small cities, thereby enforcing its attack at cities in the rear. As learned, Nokia has started long ago its investigation on the cities in China' rear areas in order to make its products localized, thereby cutting a brilliant figure in China.

Creative revolution, whether it's going to be a success

Creation promises new growth. This is a norm known to everybody.

Nevertheless, Nokia, which has ever made a big shock in the design of shapes and styles of cellular phone, are very quiet now while its rivals, Motorola, Siemens and Ericsson really brought out something new into the market.

Analysts hold that to retain in its leading position Nokia has to stand up by bringing out exclusively unique and new software and hardware products of its own. Therefore, Nokia has invested 60 percent of its R&D budget of US$ 2.7 billion into the software development, a 30 percent increase as against that of five years ago.

As revealed from Nokia's Los Angles Design Center, the greatest possible breakthrough next time is probably in the multimedia field. It's somewhat like a leap from black TV set to a colored one and Nokia is right on this historical point to stride over.

In fact, the reform by Nokia has instigated the concern of its rivals with a complicated mentality of curiosity and fear. If Nokia gets successful in its experimentation the simulators will soon follow suit, swarming in like bees. However, it will be very difficult for it to keep its leading position in the market if the trial turns out a failure.

By People's Daily Online

Questions?Comments? Click here

Motorola Predicts Soaring Sales in China

Nokia Forecasts Sales Growth of 15% in China

Iraq Vows to Foil Hostile US Plans ( 3 Messages)

China to Boost the Service Sector to Create More Jobs ( 105 Messages)

Chinese Satellite TV Hijacked by Falun Gong Cult ( 3 Messages)

Shanghai Plans Asia's Biggest Shopping Center ( 64 Messages)

Ways China's Wealth Flows into the US ( 5 Messages)