Amidst Nokia Corporation (ADR)(NYSE:NOK)’s attempts to bolster its cash reserves by getting rid of non-core assets, the stressed smartphone maker has received some good news. China Mobile, which happens to be the largest wireless company of the country, has agreed to carry Nokia Lumia 920T.
According to Bloomberg’s reports on Tuesday, Nokia’s productivity depends on the success of the Lumia lineup to offset its 6 consecutive quarters of losses. The decision taken by China Mobile to carry Nokia’s new smartphones will give the company a chance to get back their customers from Apple and Android platform.
Nokia’s deal with China Mobile will give it something that Apple lacks – an agreement with the largest mobile phone company in the world. China Mobile has a subscriber base of 703 million subscribers. It does not have the network standard to support iPhone, even thought its rivals China Telecom and China Unicom both sell sponsored Apple gadgets.
Since China Mobile is unable to offer the iPhone, Nokia has grabbed the chance to use the massive network of customers of the company to tap into a larger share of China’s smartphone market. Presently, the market share of the company is the nation is waning. Before the release of Nokia Lumia 920T, the first Windows Phone 8 offering by the company, smartphone shipments to China dropped 64% to 5.8 million units the previous quarter, as compared to a year back. Bloomberg has reported that customers shied away from buying Symbian-based phones.
The phone can be order by the end of the month and will be priced at 4,599 Yuan without a contract.
Nokia has also announced the cheaper Nokia Lumia 620 as the third phone in its new Windows 8 smartphone series.
Nokia should be congratulated for collaborating with China Mobile and taking a significant strategic step. Nevertheless, it is crucial to realize that the move is important for Nokia to stay cutthroat in China.