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Nokia's Revival:the threat from the cottage

Date Added: February 18, 2011 07:32:56 AM
Author: goodscoolwang
Category: Business & Economy

Apart from the Apple iPhone and a growing number of devices using the Android operating system, the challenge and, in the low-end market, Nokia is being snatched away market share of Chinese manufacturers. Borrow the words of the industry, Nokia is not just the face of a company, but the entire industry. Since the Taiwanese chip maker MediaTek (MediaTek) began to supply a set of chip production platform, so that any one person just entering the industry are able to produce cell phones, just a few years, Shenzhen has grown to thousands of small workshops with survival ability of the company. These are the so-called "cottage" handset manufacturers, that there is no certification, often producing pirated brand cell phone company. California market research firm iSuppli estimates that the gray market phone in China last year shipped 228 million - about the global cell phone shipments 1/5-- revenues of 8.9 billion. iSuppli analyst Wang Yang (KevinWang) expects cottage phone shipments reach 255 million this year, after the peak down. "This is because the gray market phone vendors will not be able to further price cuts." But the Nokia cell phone or other international brands will not be relieved, because the regular cell phone manufacturers in China have their cottage as some advantages cell phone manufacturers. Nokia chief executive Stephen? Elop (StephenElop) about these companies, said: "They acted quickly, the price is cheap, pose a challenge for us." The most prominent example is ZTE. ZTE is China's second largest telecommunications network equipment manufacturers, according to market research firm IDC, in the fourth quarter of 2010, in accordance with the shipments, the company ranked fourth in the global handset manufacturers, this is the first time a Chinese company obtain such quarterly rankings. ZTE cell phone shipments in 2010 totaled more than the BlackBerry (BlackBerry) manufacturer ResearchinMotion. IDC said shipments of ZTE's range "is from the steady expansion of the domestic market to Africa and Latin America and other developing regions. ZTE also recently started to enter Western Europe, the United States and Japan and other developed markets." Some analysts said Nokia is the deal of the expense side. Because it not only can not get exclusive rights to Microsoft's operating system, you must also pay royalties for their use (and it could have free use of Google's Android system). Analysts questioned, both Apple and Google are in the shadow of the brands showing weakness, what will produce what kind of benefits? Bernstein (Bernstein) analyst Pierre? Ferragu (PierreFerragu) said that given the parties have reached a broad consensus: Nokia must become more flexible and less bureaucratic, and Microsoft, such a "giant of the other heavy "alliance," it sounds like is a right way. " Investors also seemed pessimistic view, which you could understand. Since Apple's iPhone has been launched in 2007(apple iphone cases), Nokia market value had fallen by 2 / 3. And in Stephen? Elop announced deal with Microsoft, Nokia shares fell another 14%. Nokia could use some figures to give investors insist that the reason, but it allows the most perplexed: Nokia, said the integration process to be completed in 2013, and refused to provide financial expectations during recent years. Digital is certainly more ugly. Nokia will continue to market its own proprietary, but not pleasant phone software(iphone accessories). But since the phone is destined to be eliminated, their market share is likely to be lost faster. Credit Suisse believes that only the next year, Nokia's market share of smart phones may be will be from the current 30% to 15% Chutou, which will result in 2011 earnings per share from 0.5 euros in 2010 to 0.4 euros . Of course, it was also the cooperation of the dual attitude of optimism, as Nokia's own cell phone manufacturing experience combined with the advantages of Microsoft, WP, both in the smart phone will make the most competitive U.S. market foothold. But in order to create public phones Nokia wants to continue for long to keep its dominant position, then the Chinese market will undoubtedly be its top priority. From: wholesale iphone cases
 
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