Nokia sees large increase in mobile phone sales By Li Weitao (China Daily) Updated: 2005-02-24 14:11
Nokia, the world's top mobile phone maker and a major telecoms equipment
maker, yesterday said it recorded strong sales in China last year thanks to the
country's rapidly growing mobile communications sector.
The firm's net sales in China surged 44 per cent year-on-year in 2004 to
reach US$3.6 billion, said David Ho, president of Nokia (China) Investment Co
Ltd.
Nokia's exports from its facilities in China soared to US$3.3 billion last
year, up 56 per cent year-on-year.
That has helped Nokia maintain its position as the largest exporter in
China's mobile communications sector, Ho said.
Nokia's total exports from China in the past five years have exceeded US$14
billion.
Its local purchases in China reached US$3.1 billion last year.
Jorma Ollila, president and chief executive officer of Nokia, said the year
2004 was a banner year for Nokia's business in China and he is very bullish
about the Chinese market.
"We are expecting China will become the largest market for Nokia in the
coming three years," he told a press conference marking Nokia's 20th anniversary
of business in China yesterday.
Currently, China is Nokia's second largest market.
According to Ollila, China's contribution to Nokia's global net sales over
the past 10 years has averaged 9 per cent.
Ollila vows to increase investment in China to maintain Nokia's leadership
position both in the country and globally.
"Nokia's success is actually reflecting the rapid development of China's
mobile telecoms industry and solid growth of the Chinese economy, and the
continuous and valuable support from our Chinese partners," he said.
"We are part of China's success, and we are very proud of that."
By 2004, Nokia's accumulated investment in China stood at US$2.18 billion.
Since January 2004, Nokia has maintained its No 1 position in China's mobile
phone market, staying in front of arch rival Motorola.
The firm also said it was the largest 3G (third generation) mobile telecoms
equipment provider in Asia and the Greater China region.
Nokia has provided 3G equipment to the top three cellular operators in Taiwan
Province and major operators in Hong Kong.
Chinese mainland authorities have yet to award operators licences to deploy
3G networks.
Ollila said he believed the licensing is likely to occur this year and 3G
network deployment will begin in 2006.
Ollila announced Nokia has already begun producing 3G products including
mobile phones and network equipment in China.
The move is aimed at supporting the global market and preparing Nokia for the
upcoming 3G roll-outs in China.
The introduction of 3G in China will create big opportunities for Nokia to
grab more market share, said Colin Giles, senior vice-president in charge of
Nokia's customer and marketing operations in Greater China.
Analysts estimate Nokia holds about a 20 per cent share of China's mobile
phone market.
Globally, its market share is more than 30 per cent.
