Nokia finds some stability in China
Finnish mobile device maker Nokia has been having trouble in numerous markets recently. The company may be a well known name in the field of mobile technology with its wide range of products and impressive smart phone portfolio, but it has experienced a difficult year in regards to its latest projects. Many of the company’s latest smart phones have been the subject of aggressive hype, but consumers have responded poorly to these products when they reached the market. China is one of the countries where Nokia has been seeing some success, but the Chinese market may not be enough to revitalize the company.
Growth in China may be due to mobile commerce
The Chinese market accounts for one-third of the world’s smart phone shipments. Mobile technology is in very high demand with consumers, especially those that are becoming more interested in mobile commerce. Nokia is one of the few smart phone makers that develops devices that are equipped with NFC technology. Much of mobile commerce revolves around the use of NFC technology, which is capable of transforming a smart phone into a mobile payment platform.
Consumers not yet won over by high-end Lumia phones
While the demand for mobile commerce has been growing among Chinese consumers, Nokia has had trouble establishing a strong foothold within the country. In the third quarter of 2012, Nokia likely sold fewer than 500,000 devices from its Lumia line in China. Less than 100,000 of these are estimated to be high-end Lumia devices, such as those equipped with NFC technology, like the 820.
China Mobile deal could help boost Nokia performance
Nokia is expected to see some major gains in China due to a new deal with China Mobile, the country’s largest mobile network operator. Per the deal with China Mobile, Nokia will begin selling a localized version of its high-powered Lumia 920 smart phone, which is equipped with NFC technology. This deal with China Mobile could increase the sale of high-end mobile device in the country by as much as 50%.
China Mobile announces plans to bring mobile commerce to 12 Chinese provinces
China Mobile, the world’s largest mobile network operator, is preparing to rollout its first mobile payments initiative in February 2013. The company has begun stockpiling NFC-enabled smart phones, provided by eight of the world’s largest smart phone manufacturers, in order to prepare for the launch of the initiative next year. The company has announced that it will introduce new NFC services to 12 provinces in China as part of its mobile commerce initiative, making its NFC-enabled mobile devices to consumers at the time of launch.
China Mobile teams with China UnionPay for initiative
The initiative represents a partnership between China Mobile and China UnionPay, a leading commerce network. The two companies are keen to address the growing demand for mobile commerce services coming from China Mobile’s more than 690 million subscribers. These consumers are eager to make purchases for goods and services using their mobile device rather than physical currency or payments cards. The common consensus is that mobile commerce platforms will be a more convenient way to conduct transactions.
NFC-enabled mobile devices to be sold late 2012 and throughout 2013
In 2013, China Mobile aims to sell more than 10 million NFC-enabled mobile devices. Many of these devices will come from Samsung, HTC, Huawei, and ZTE, and will actually be available near the end of 2012. The bulk of these devices will be sold during 2013, alongside the launch of the new mobile commerce initiative. Once the initiative is launched, China will have one of the most expansive mobile commerce infrastructures in the world.
Security precautions still unclear from China Mobile
China Mobile has not yet detailed the security measures it is taking with its mobile commerce initiative. Security remains one of the most significant issues concerning mobile commerce. Without adequate security, consumers will find their financial information at risk of theft and exploitation. In other parts of the world, concerns regarding security have served to stymie the progress of the mobile commerce industry and keep many consumers away from mobile payments entirely.
