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Nokia sets sights on middle-range market

By Ma Si | China Daily | Updated: 2018-10-18 09:25
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Visitors at the Nokia booth at the Mobile World Congress in Shanghai in June, 2017. [Photo provided to China Daily]

A new Nokia-branded smartphone has been unveiled in China as part of the broader push to revive the brand name under the wing of HMD Global and vie for an increased presence in the nation's highly competitive middle-range segment.

Priced from 1,699 yuan ($246), the Nokia X7 is designed to inject new vitality to the brand, which was once regarded as the premier one for feature phones. After taking the Nokia phone brand from Microsoft Corp almost two years ago, Finland-headquartered HMD aims to make it a hub for younger consumers.

Li Baoyuan, senior market manager at HMD's China region, said around 70 million consumers are using Nokia feature phones and smartphones. "In China, 70 percent of our users are young people aged between 20 and 29, and 85 percent of them are male."

Nokia was the ninth-largest smartphone vendor globally in the second quarter of 2018, with around 4 million shipments, according to market research company Canalys.

"The cost-effective approach and its existing brand appeal have helped Nokia grab the No 10 spot in China. But the competition is so intense and only a 10 percent market share is left for smaller vendors to fight for," said James Yan, research director at market research firm Counterpoint.

Instead of pouring huge resources into winning the mainstream market, how to effectively tap into a niche will be one of the keys to success, Yan added.

That seems to be the approach Nokia is adopting. The company is offering devices priced at around 1,500 yuan. That is within the most popular smartphone price range in China. According to a report by consultancy Nordwave Research, about 40 percent of smartphones sold in China are priced between 1,000 and 1,999 yuan.

The Nokia X7 comes with a notched 6.2-inch display and a Snapdragon 710 processor. The 3,500mAh battery supports 18W wired fast charging, while the 12-megapixel main camera is assisted by a 13 megapixel depth sensor.

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