Nokia Mobile Phones China Diagnostic
NOKIA
PROPOSED OBJECTIVES AND AGENDA FOR WORKSHOP FEBRUARY 26
OVERALL PROJECT OBJECTIVES AND APPROACH
PHASE 1:  TIMELINE
OBJECTIVES OF WORKSHOP
EMERGING PERSPECTIVE
CHINESE MARKET GROWING AND CHANGING RAPIDLY (1/2)
CHINESE MARKET GROWING AND CHANGING RAPIDLY (2/2)
KEY OPERATOR TRENDS AND IMPLICATIONS
CHINESE HANDSET MARKET WILL CONTINUE TO GROW
LARGE PART OF FUTURE MARKET GROWTH WILL COME FROM SMALL CITIES
REPURCHASE/REPLACEMENT WILL BECOME MORE IMPORTANT
LOW END SEGMENT WILL CONTINUE TO TO GROW
PREPAID WILL CONTINUE TO GROW
GIVEN EVOLUTION IN CONSUMER ELECTRONICS, MOBILE HANDSET RETAILING COULD EVOLVE TO MODERN FORMATS
IN 1ST/2ND TIER CITIES, CENTRALIZATION OF PURCHASING AND DIRECT COVERAGE BECOMING CRITICAL IN CONSUMER ELECTRONICS
MOTOROLA ACCEPTS LOWER PROFITABILITY IN CHINA
STATE DEVELOPMENT & PLANNING COMMISION (SDPC) SELECTED TEN DOMESTIC MOBILE PHONE PLAYERS TO SUPPORT
SOME LOCAL PLAYERS ALREADY HAVE ACCESS TO LEADING TECHNOLOGY
LOCAL PLAYERS ARE UNLIKELY TO CLOSE THE CAPABILITY GAP UNLESS SUPPORTED BY ONE OF THE GLOBAL LEADERS
FOR EXAMPLE, HAIER COULD BE A STRONG COMPETITOR IF IT WERE  BACKED BY MOTOROLA, ERICSSON OR SIEMENS