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Acquisition set to have minimal impact in China
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Microsoft’s US$7.2 billion acquisition of Nokia’s handset unit is seen to have only a minimal impact on China’s smartphone market because of the Finnish company’s limited market share, industry insiders said yesterday.
Samsung, Lenovo and Apple are the leading smartphone brands in China followed by rapidly growing domestic firms, including Huawei, ZTE and Xiaomi. Nokia doesn’t feature in the top-10 list of smartphones in the domestic market.
Hu Tingting, analyst at Beijing-based research firm Analysys, said Microsoft hopes to use the acquisition to increase its market share for its Windows Phone mobile operating system and also to lift Nokia’s share.
Nokia has 4 percent of the domestic smartphone market while Microsoft’s Windows Phone system only accounts for less than 3 percent of the market. Both face pressure from Google’s Android and Apple’s iOS operating systems, according to Hu.
In the broader mobile phone market in China, Nokia’s share is below 5 percent now — a sharp drop from about 30 percent several years ago — as it faces stiff competition from Apple and Samsung.
In a recent interview Erik Bertman, head of Nokia China since May, positioned the Finnish company as “a new challenger instead of a leader,” to reverse its rapid loss of market share in the world’s biggest smartphone market.
South Korea’s Samsung led China’s smartphone market with 18 percent in the second quarter, followed by Lenovo with 12 percent, according to Canalys, a US-based research company.
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