Nokia Bullish On Eastern Market

[coolrajiv 1]

Source - http://www.telegraphindia.com/1071129/asp/...ory_8606248.asp

Calcutta, Nov. 28: Nokia is betting big on eastern India.

The handset major, which reported a 40-45 per cent rise in business last year from the eastern region, expects the growth to continue in the next two years.

“The east is no longer a story of higher growth on a smaller base. By next year, subscribers from the east will equal other regions. So we are very bullish about the eastern market,” said D. Shivakumar, vice-chairman and managing director of Nokia India.

Nokia’s battery problems have not dented handset sales, Shivakumar said. During Diwali, sales rose 45 per cent compared with last year.

The move towards standardising batteries, chargers and other accessories has begun, he said.

Nokia’s combined market share in the CDMA and GSM segments is around 53 per cent.

The company plans to operate mainly in the replacement market for CDMA phones.

The replacement segment is about 10 per cent of the total CDMA market in the country.

Nokia has pulled out of the CDMA segment in many countries but since the Indian CDMA market is on a growth curve, the handset major plans to maintain status quo in this segment for sometime.

“The price of CDMA handsets at below $20 does not make it viable for us to target the segment separately. We have six handset models in this segment and plan to continue with the same,” Shivakumar added.

Nokia, which has a 70 per cent market share in the GSM segment, does not believe in volumes and sub-Rs1,000 handsets.

The lowest price of a Nokia model is Rs 1,499 compared with Vodafone’s magic box at Rs 1,199.

“We do not believe in number games and will do what it takes to adhere to international safety standards and provide quality phones to customers,” he added.