Along with introducing new mobile models, updates, and an OS at Nokia Connection 2011, Nokia plans to now turn toward the Asian market that it appeared to have forgotten. According to the spokesperson of the company, Nokia is planning new strategies to consolidate market share in Asia. Nokia’s Chief Executive Officer Stephen Elop is expected to lay out the different models and market plan at Nokia Connection 2011 at Singapore. This comes as a part of efforts for reducing market share losses to cheap unbranded handsets, Android smartphones, and most importantly, in face of rising popularity of Apple among Asian customers.
Experts agree that Elop may have sidetracked Asian market while combating Apple’s iPhone and Google’s Android smartphones in USA and Europe. Boris Boehm, of Aramea Asset Management, said that with so much focus on developed markets and the race with Apple, the concept of selling and producing affordable handsets had been lost. The former Microsoft executive now has his first opportunity to win back Asian customers when he delivers his first major speech in the Orient after becoming the CEO. His major focus here will be to ward off Samsung Electronics Co. and ZTE Corp in Asia. This is an important step as Asia is the region which houses two of the biggest phone markets, with growth expected to rise more than 40% in the coming 4 years.
All the same, investors aren’t really satisfied by Elop. His reign as the CEO has seen more than 8,800 job cuts. Nokia has fallen more than 50% in Helsinki, and is currently operating at a near 13-year low. Despite a 30% increase in sales in China, heavy local competition has driven down prices. Market share in India has also gone down. Globally, shipments have fallen by 2.3% in the first quarter, with competitors such as Apple, ZTE, HTC gaining market share. Apple has already overtaken Nokia as the industry leader by revenue in the last quarter. In spite of that, Executive Vice President Colin Giles insists that Asia is a hugely important market for them.
Asian manufacturers are slowly taking a bigger share of the $138 billion smartphone market of Asia, capitalizing on increasing 3G use in India and China. However, Nokia, too, has taken steps to benefit from the growing Asian market. It has planned to establish a plant in Vietnam with an investment of 200 million Euros to manufacture low-end phones. The factory is expected to start next year, and further expansions are also in order.
