China Mobile Limited
), the largest telecom carrier in the world, has launched a
customized Lumia 920T for its customers. Lumia 920T became the
first Windows-based smartphone that runs on China's national
grown technical standard TD-SCDMA (Time Division Synchronous Code
Division Multiple Access).
Lumia 920T shares almost identical features with the one
offered in the Western countries. It possesses Pureview's
advanced floating lens technology and Nokia City Lens, which
offers bright picture and advanced location service
Furthermore, Lumia 920T integrates with Chinese web service
providers like, Sina, Sohu, Tencent, Baidu and will provide
access to two of the most famous application stores of China.
China Mobile's customers can avail the phone by the end of the
year and will cost them around $739, if bought from retail
Grappled with increasing pressure from
) iPhone and other Android-based phones,
) tied up with tech giant
) in 2010 to offer Windows-based phones. However, the partnership
has not yet delivered any meaningful result for the company.
Nevertheless, since November, things seem to improve for the
Finnish handset manufacturer. Nokia recently reported that it has
seen strong demand for Lumia 920, since the device became
available in early November and went out of stock at online
), Nokia's exclusive partner for its flagship device has also
reported that it only has the white model left in its
Nokia is also doing well in other parts of the world
particularly in Germany and Australia, where the company has
experienced sellouts of its flagship Lumia 920. The tie up with
China Mobile has come at the right time for the Finnish handset
manufacturer as tapping the biggest carrier in the biggest
smartphone market will help Nokia to increase its market share in
Armed with a more than billion plus population and a 3G
penetration of as low as 19%, China provides huge growth
opportunity for Nokia. However, Nokia reported lackluster results
in China in the third quarter, with sales declining 62% year over
year. Partnering with China Mobile and using the company's own
technical standard will help Nokia to win back its lost market
China Mobile and Apple are still having some issues over the
company's TD-SCDMA standard and the revenue sharing policy, which
is delaying the carrier's iPhone launch. We believe teeming up
with the biggest carrier in the country will allow Nokia to grab
some of the impatient Apple customers in the Mainland.
We retain our long-term Neutral recommendation on Nokia Corp.
However, it holds a Zacks #2 Rank, implying a short-term Buy
rating. China Mobile also holds a Zacks #2 Rank, implying a
short-term Buy rating.
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