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Nokia to cut jobs, 2 distribution centers in China
By Zhu Shenshen |
July 12, 2012, Thursday
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Online Edition
Online Edition
NOKIA Corp which is struggling to survive stiff competition from iPhone and Android phones is going to cut jobs in China, its biggest regional market, the Finland-based company said today.
Nokia will integrate its four distribution centers in Chengdu, Beijing, Shanghai and Guangzhou into two in Beijing and Guangzhou and will lay off workers, but no details are available now, according to Gao Xiang, Nokia China spokesperson.
"Apple and Google (Android) have changed the industry structure completely through software and service-oriented business model," said Wang Ying, an analyst with Beijing-based research firm Analysys International.
"Hardware firms, like Nokia, need to adapt to the new trend," Wang added.
By the end of the first quarter, Nokia's market share in China was 11.4 percent, behind Samsung's 24.86 percent and Huawei's 12.6 percent, according to Analysys.
Several years ago, Nokia dominated the market with a lion's share of more than 30 percent.
Last month Nokia said it would lay off 10,000 jobs globally and close several plants in Europe and Canada by the end of 2013.
Boston-based Strategy Analytics said Nokia had significantly lost market share to Samsung, which pushed it out as the world's largest seller of cell phones by volume, grabbing a 25 percent global market share against Nokia's 22 percent.
Nokia plans to roll out cheaper smart phones in China to fight back, Gao said without elaborating.
Nokia will integrate its four distribution centers in Chengdu, Beijing, Shanghai and Guangzhou into two in Beijing and Guangzhou and will lay off workers, but no details are available now, according to Gao Xiang, Nokia China spokesperson.
"Apple and Google (Android) have changed the industry structure completely through software and service-oriented business model," said Wang Ying, an analyst with Beijing-based research firm Analysys International.
"Hardware firms, like Nokia, need to adapt to the new trend," Wang added.
By the end of the first quarter, Nokia's market share in China was 11.4 percent, behind Samsung's 24.86 percent and Huawei's 12.6 percent, according to Analysys.
Several years ago, Nokia dominated the market with a lion's share of more than 30 percent.
Last month Nokia said it would lay off 10,000 jobs globally and close several plants in Europe and Canada by the end of 2013.
Boston-based Strategy Analytics said Nokia had significantly lost market share to Samsung, which pushed it out as the world's largest seller of cell phones by volume, grabbing a 25 percent global market share against Nokia's 22 percent.
Nokia plans to roll out cheaper smart phones in China to fight back, Gao said without elaborating.
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