Nowadays every blogger thinks it is his duty to talk about Nokia’s failure, but not all of them can provide weighted judgments about this. The Finnish company is the biggest mobile manufacturer in the world, and on some markets it still dominates (for example, on the mobile phone market), while on some other markets it’s losing its positions, being busy with “connecting people” instead of concentrating on the market needs.
Nokia’s humanitarian activity is welcomed by everyone undoubtedly, but it reflects badly on the company’s financial indexes. So Nokia needs to discover new markets where the other manufacturers either haven’t reached yet or don’t even want to reach. It will be logical for Nokia to observe which countries or regions have the biggest population and to try to win their hearts, thereby increasing the total sales rate and getting more profit.

According to IDC, Nokia’s market share dropped in Q1 2011 from 34.7 percent to 29.2 percent compared to the same period in 2010. This was the first time when the company’s results fell below 30 percent during the last 10 years. Another indicator shows even worse results — the company’s pre-tax profit dropped from €411 million to €403 million. Taking into account this and other data, Nokia announced it was going to cut 4000 jobs (mainly in Denmark, Finland and the UK).
So what do you think, what regions Nokia is going to focus on – India, the U.S., Russia? No, China can be the Noah’s Ark for Nokia. According to the reports from March, 2011, there are over 250 million people in China using Nokia devices, which is the 29.6 percent of China’s mobile phone market. Moreover, according to Morgan Stanley’s latest AlphaWise survey of China’s handset market, about 87 percent of mobile phone users in China want to get a 3G handset as their next phone. 30 percent of them wish to have an iPhone, 25 percent want a Nokia device, 7 percent want an HTC handset, 5 percent want a Samsung, 4 percent want a Motorola device and 3 percent are thinking about a Blackberry.
It was expected that the iPhone would be the dream of many Chinese users, and it is nice that Nokia is on the second position. Here Nokia is in a beneficial position as in 2008 Apple ignored the Chinese market, and Google is neutral and does not interfere in their affairs. So the Chinese 889 million market is quite an attractive deal for Nokia, especially if we take into account the fact that the Chinese economy is growing very quickly.
Plus, Nokia’s Ovi Store is the most popular mobile app service in the country, and, according to Chinese analyst house iResearch, 65.2 percent of Chinese mobile users “regularly” access the store.
I guess there is nothing to add, as the numbers talk for themselves. Seems like China can show Nokia a way out if this difficult situation.
Source