China mobile phone market
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The mobile phone market in China is dominated by overseas and Taiwanese brands, which account for 84.5% of the market. Nokia is still the leading smartphone brand in China, but Android phones are gaining popularity rapidly. Chinese consumers have different preferences depending on age, location, and financial status. Samsung, Apple, and local brands like Xiaomi have some of the most popular smartphones, while Android operating system leads the market for new phones launched between January and October 2011. China's massive market is still emerging and growing significantly each year.
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Nokia- Microsoft alliance in the smartphone industry CASE StuD.docx
Nokia- Microsoft alliance in the smartphone industry
CASE StuDy
The Nokia-Microsoft Alliance in the Global Smartphone Industry (circa 2011)
The Nokia-Microsoft strategic alliance was announced in early 2011 to cooperate in the de- velopment of smartphones. The Wall Street Journal wrote: “Nokia calls Microsoft for help.”1 The Financial Times observed: “Elop jumps into the arms of former boss.”2 The alliance was specifically initiated by Stephen Elop, an ex-Microsoft executive who had worked with Steve Ballmer, CEO of Microsoft. No wonder Nokia hired Elop to become its CEO in 2010. This was a calculated move by Nokia to grow in an industry that carried good prospects for the future. In addition, Elop’s expertise was in the software sector, where Nokia wanted to venture into the future. Both companies needed a partner to expand in an industry that was in a growth mode. Besides this, Nokia was particularly vulnerable because of its losing market share and because Apple’s iPhone was growing in the U.S. and global markets. Microsoft was interested in Nokia because of its long-term interest regarding introducing Windows phone technology/software. Since Nokia continued to be a global player in the cell phone industry, it made sense to create a corporate tie-up that aimed at global expansion for both companies. Success of Apple’s iPhone was another factor in seeking a long-term alliance in a market that has grown multifold in the global mobile phone market.
In 2012, Nokia was the largest manufacturer of mobile phones and other telecom gear in the world with revenues of $55 billion and a market capitalization of $19 billion. Microsoft, on the other hand, was the largest software maker in the world and generated revenues of $69 bil- lion. The company carried a healthy market capitalization in 2011 that stood at $266 billion.3 By being a cash-rich company, Microsoft was able to inject a sizable amount of money in the alliance. As of February 2012, a closer look at the alliance reveals that both companies’ plans worked well. Nokia has released a new series of mobile devices, called Lumina, with Microsoft’s Windows technology. At the same time, Nokia continues to lose market share in the global mobile industry because of its aging technology (“Symbian”). Google’s Android is a clear winner because of high demand, followed by Apple’s iPhone. Google has done well since its acquisition of Motorola’s Mobility.4 Value Line in 2012 wrote: “Nokia’s operating results continue to deteriorate; the transition of the smartphone is under way; over time, Windows Phone will be the software driving Nokia’s upscale handsets.”5 Although Nokia was always the market leader in mobile technology, its anemic strategies in the global market indicate that the company is losing steam in the mobile phone industry. The situation is the same with Research in Motion’s Blackberry, which continues to lose market share in global markets. Just a few years ago, Blackberry was the main play.
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China mobile phone market
- 1. The Mobile phone market of China
- 2. China Mobile Phone 1 Nokia 5 HTC Brand list 1Q 2011 2 Others(page3) 6 Apple 3 Samsung 7 SE Source: internet consumer research center 4 Moto
- 3. Others 1 Blackberry 2 LG 3 Lenovo 4 HUAWEI 5 MEIZU 6 SHARP 7 Coolpad 8 ZTE 9 Newman 10 others
- 4. China local brand just occupy only 8.9% market… 84.5% of China mobile phone brand from overseas and Taiwan Source: internet consumer research center by 1H 2011
- 5. 2008-2013 China mobile phone production trend forecast Production (10,000) Increase rate
- 6. Nokia is still the leading in China smart phone market, however Android catch up faster and faster…
- 7. If Senior Chinese citizen want to purchase a Consumer new cell phone, his friend will tell he or she : Buy Nokia. If young Chinese countryside people buy phones, will catch the popular ones with twitter or social network features . If city young guys will buy the most advanced phones…Android, Blackberry…Apple… China is a emerging market, emerging means so many classes in this society, they have different personality , financial ability and social value…
- 8. Top 10 popular smartphone in China (By purchase quantity) Samsung I9100 MIUI Apple Samsung S5830 Nokia N9 SE LT18i Moto ME525 MEIZU M9 Samsung I9220 Nokia C5
- 9. Android,Symban,Windows…Marketing share of new lunch smartphones (Jan- Oct 2011) Feature phone
- 10. TOP 10 Android phone
- 11. Facebook: Jon An Email: abaczan@gmail.com Alcatel one touch Shenzhen,China