Nokia - Nokia Sales Surge 44pct in China in 2004
Nokia Sales Surge 44pct in China in 2004 , 02.24.05, 1:06 PM ET Asia Pulse Pte Ltd BEIJING, Feb. 24 Asia Pulse - 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, the president of the Nokia (China) Investment Co Ltd. Nokia's exports from its facilities in China soared to US$3.3 billion in 2004, up 56 per cent from 2003. That had 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. He was very bullish about the Chinese market. "We are expecting that 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 that licensing was likely to occur this year and that 3G network deployment would 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.
Nokia: China Poised to Be Biggest Market
Thursday February 24, 9:30 am ET
China Set to Become Nokia's Largest Market Within Three Years, CEO Jorma Ollila Says
HELSINKI, Finland (AP) -- Mobile phone giant Nokia Corp. expects China will likely overtake the United States as its biggest market within three years, Chief Executive Jorma Ollila says.
Ollila, who visited Beijing this week to mark the 20th anniversary of the company's presence there, made the comment Wednesday in the Chinese capital.
The Chinese market is already Nokia's second biggest market after the United States, and with the expected rollout of third-generation, or 3G networks, and the surge in new users, he said Nokia was intent on keeping its market share there strong.
"During the next three years, I would not be surprised to see China become Nokia's largest market in net sales terms," he said, adding that mobile phone use there was expected to account for nearly one quarter of the estimated 3 billion subscribers worldwide it has forecast by 2010.
Since it first started operating in China in 1985, Nokia has grown from five employees there to more than 4,700. Worldwide, the Espoo-based company employs about 53,000 workers.
China's sales in China rose 44 percent to $3.6 billion and the company plans to expand its manufacturing facilities there, along with research and development. Currently, Nokia operates five R&D units and has four manufacturing centers there.
"This represents a tremendous opportunity for Nokia," Ollila said. "Our aim is to maintain our leading position in China and to continue to grow as the most preferred partner within the Chinese mobile communications industry."
China Set to Become Nokia's Largest Market Within Three Years, CEO Jorma Ollila Says
HELSINKI, Finland (AP) -- Mobile phone giant Nokia Corp. expects China will likely overtake the United States as its biggest market within three years, Chief Executive Jorma Ollila says.
Ollila, who visited Beijing this week to mark the 20th anniversary of the company's presence there, made the comment Wednesday in the Chinese capital.
The Chinese market is already Nokia's second biggest market after the United States, and with the expected rollout of third-generation, or 3G networks, and the surge in new users, he said Nokia was intent on keeping its market share there strong.
"During the next three years, I would not be surprised to see China become Nokia's largest market in net sales terms," he said, adding that mobile phone use there was expected to account for nearly one quarter of the estimated 3 billion subscribers worldwide it has forecast by 2010.
Since it first started operating in China in 1985, Nokia has grown from five employees there to more than 4,700. Worldwide, the Espoo-based company employs about 53,000 workers.
China's sales in China rose 44 percent to $3.6 billion and the company plans to expand its manufacturing facilities there, along with research and development. Currently, Nokia operates five R&D units and has four manufacturing centers there.
"This represents a tremendous opportunity for Nokia," Ollila said. "Our aim is to maintain our leading position in China and to continue to grow as the most preferred partner within the Chinese mobile communications industry."
posted at 12:02 p.m.
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