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Tuesday, October 25, 2005

Nokia's push into rural China

The future of the mobile phone looks as it is developing into scissors. On the one hand, we have the high-end handsets that are brought into the market like the finger that is used as a transmitter, while on the other hand, companies push into the segment that is out of the reach of those high end phones.

Clearly, this is a reaction to the ever growing mobile market that recently hit 2 billion users. Companies start to prepare for the lower end market and saturation, because it seems as if the higher end-market is more competitive, and characterised by lesser number of users.

Now Nokia is making the push into rural China. "David Ho, president of Nokia (China) Investment Co Ltd, said Nokia will "make substantial efforts" to introduce low-price mobile phones to China to tap the less-developed markets.

"Mobile phone subscriber growth in big cities is continuing to slow since market penetration is already high." Okay, they currently move into second, third or fourth tier cities - cities that are still big compared to other cities across the world. Still, this is a sign of future development. The scissors are opening, so to speak.

(By Asia Business Consulting)