Nokia has decided to close two sales offices in China to carry out a reorganization of its efforts in the Asian country. The company also confirmed that layoffs will occur in China, although it may be offset by hiring in strategic locations such as Beijing and Guangzhou.
China is undoubtedly one of the most interesting markets for mobile manufacturing companies. This is a country with millions of potential customers, where the sale of devices and content than the rest of the world. Therefore, many companies have chosen China as a future option, terminals featuring all focused on the many consumer profiles.
One company that decided to look at China as one of the territories of the future was Nokia, but it seems that your bet has not achieved the objectives sought. The Finnish company has seen its presence in China has been overshadowed by local manufacturers such as ZTE and now the big brands of Apple and Samsung.
Specifically, in a report of Nasdaq ensure that the market share of Nokia in the smartphone has risen from 30.4 percent to 11 percent within a year. The popularity of Apple's iPhone and Android handset that Nokia have lost prominence. For Android devices, ZTE is one of the companies that has managed to impose. Using the pull in his homeland, ZTE has grown from a quota of 3.6 to 10.6 percent.
This poor performance has forced Nokia to rethink its strategy in China, choosing to focus their efforts. For this, the company has decided to close two of its sales offices in Chengdu and Shanghai. Moreover, according to Nasdaq, Nokia plans to abandon some of its staff in China, but has not specified the exact number of casualties that will occur.
While it is true that the Finnish company closed offices in the Asian giant, it seems that his intention is to increase efforts in two of its offices. Thus, branches of Nokia in Beijing and Guangzhou will be strengthened to be the engine of the company in China.
