Among the CDMA mobile phone manufacturers in China, Motorola is the only enterprise funded by foreign capital. If Nokia, the robust competitor, also tries to plant itself in it the market pattern of the CDMA mobile phone will soon take on another look.
The latest report for the first quarter of 2002 issued by Nokia reveals that the mobile phone overlord occupies some 38 percent shares of the world market, still in a position of ruling the roost. However, the Chinese mobile phone market, which has already been turned into a battlefield for mobile phone big-shots to seek for hegemony, has for a long time been heartache for Nokia, in which it has always been an inch shorter than Motorola, its rival.
Make a change of the CDMA market pattern
The fact that Nokia wants to put a hand in the Chinese CDMA market has touched Motorola to its vulnerable point. Among the CDMA phone manufacturers in China Motorola is the only one of foreign capital. Though the Bird of Ningbo is ranked at the fifth in output and sales of the phone sets and followed by Kejian and Hai'er. However, the influence is no match for Motorola so far as the brands' comparability is concerned.
If Nokia, the global and bulky overlord of the mobile phone market is going to put a hand in, it will soon rouse a change of the CDMA market pattern in China and the status of Motorola will be challenged.
Starting from May 1, 2002 onwards, Nokia divided its mobile phone sector into nine business centers of independent accounting, each being charged with the business of the specific market. In this action, the boldest and the most creative was the setting-up of an extra-low price portable phone sector, dedicating to the markets in Russia, India and China. The establishment of the sector indicated in acquiescence its neglect of the markets in the past.
However, Motorola, its old rival announced in advance that it would go all out to offer value-added service and had a plan to extend its service network further to medium and small cities. To put a brake on the rival's action Nokia was out with a quick reaction. Its vice president said Nokia was going to stage a stronger assault on the medium and small cities, thereby enforcing its attack at cities in the rear. As learned, Nokia has started long ago its investigation on the cities in China' rear areas in order to make its products localized, thereby cutting a brilliant figure in China.