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 sees promising growth in mobile commerce
Mobile commerce is on the rise in China, according to a new report from Infiniti Research, a market research firm. More consumers are showing interest in mobile commerce as smart phones and tablets become more commonplace. These consumers are finding that paying for products, shopping, and even banking are more convenient using their mobile device than other methods. As such, mobile commerce has begun experiencing a swell of support from these consumers, sparking investment activity from the companies that aim to see financial gain from the growing phenomenon.
Report highlights the contributing factors to market growth
The report from Infiniti Research suggests that China’s mobile commerce sector will experience a compound annual growth rate of 41% from 2011 to 2015. The accelerating adoption of mobile devices is cited as one of the most significant factors to market growth. Growing demand for digital goods, such as catalogs, e-books, music, etc., is also contributing to the growing momentum behind mobile commerce. There is, however, a major concern that may derail some of the growth that mobile commerce is experiencing currently.
Consumers still concerned for their security
The report shows that consumers are becoming increasingly concerned for the security of their financial information. As more people participate in mobile commerce, it is becoming apparent that this sector could be an ideal target for hackers and other malicious parties that want to exploit the financial information of consumers. Many of the concerns regarding mobile commerce revolve around the use of NFC technology. This technology has, in the past, been targeted by hackers as an easy way to attain access to a consumer’s financial information.
Mobile commerce expanding throughout Asia
Despite issues regarding security, mobile commerce is expected to continue growing in popularity amongst Chinese consumers. The concept has also been receiving growing support throughout the rest of the Asian market, where mobile devices are becoming more common. Asia is quickly establishing itself as the mobile commerce hub of the world.
