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Nokia faces great challenge in China from China-made cell phones and China replica cell phones. Last week, Nokia reveals its first deficit in ten years in its own seasonal report. 

“China-made phones are much cheaper than foreign brand.” A 24-year-old manager in Shanghai spent about $73.5 on a Lenovo mobile phone. He said the phone was the same as the foreign branded product. 

Lenovo, ZTE, Huawei and some replica cell phone manufacturers are grabbing pies with Nokia manufacturers as well as other foreign brands like Apple iPhone and RIM Blackberry. China replica cell phone providers even make their own brands, like Hiphone and Anycool.

Moreover, China wholesale sellers, retailers and dropshippers solve product distribution problems for China Replica manufacturer, and quite a few of those sellers even export replica products to foreign countries. 

“Nokia faced many problems before, but never like this time. Nokia now encounters competitions from high, middle, low-end market at the same time in China.” Said credit analyst Kulbinder Garcha. 

Real Market Share

Nokia share prices in Helsinki Stock Exchange in Finland have fallen 18%, to Euro €9.09. But ThomasJonsson, a spokesman from Nokia, emphasized: “We are still number one cell phone brand in China. And we have powerful strategy to keep improving”. 

In the third season, smart phones fell about 6% as Nokia reports its first deficit, comparing to last season. Nokia claimed that its entire market share was about 38% and would keep the same level in the fourth season. 

But some analysts doubt these numbers and said some small numbers were hard to trace. Garcha expressed: “We shouldn’t neglect the number of shipments of China electronics replica mobile phones. It is necessary to revaluate Chinese cell phone market and Nokia’s share.” 

Mediatek

Garcha said that Mediatek is eroding the losing share of Nokia. Mediatek chips have been built in Lenovo, Huawei, ZTE and many replica cellular phones. 

In the past two years, the shipment from Mediatek doubled and the total number was over 300 million. If this number was right, it showed that Nokia’s market share fell to 32% – that undoubtedly influence Nokia profit in China. 

Sophia Liang, an investor relationship manager from Mediatek expressed that Nokia only treated cell phones as chat machines and China manufacturers were keener than Nokia. “To youngsters, cell phones need to fit their apparels and school bags.” She said, “These gadgets should have right color, appearance and functionality. So personal customization is a must.” 

Most high-end China-made phones are entertainment cell phones. They incorporate more and more advanced functions like mp4 function and dual sim. Many people show that they would buy cell phones with MP4 function than purchasing standalone players from wholesale MP4 players sellers or retailers.