Nokia Corporation (ADR) (NYSE:NOK)’s new smartphone may be giving the Finnish mobile phone maker the much-needed boost they’ve needed for awhile. The company recently saw an increase in 9.7% thanks to the recent reports of China Mobile’s plans to take on Nokia.
Earlier today, we reported that Nokia plans to launch the 920T in China. This will be the first Windows 8 smartphone for China Mobile.
According to Wall Street Journal, it’s important for Nokia Corporation (ADR) (NYSE:NOK) to have a strong presence in the China market which makes for one-third of the world market. It’s now overtaken the U.S. market and that number is expected to grow as more of China’s consumers continue to buy smartphones.
Despite the good report, Nokia Corporation (ADR) (NYSE:NOK) still has a long way to go in terms of success and sales. Bernstein Research analyst Pierre Ferragu explained that during the third quarter, Nokia only sold about 500,000 Lumia smartphones in China alone and fewer than 100,000 were probably the Lumia 920. He also predicts that if this China Mobile deal works out as planned, the sales for the high-end Lumia may get a boost from 25% to 50% and add 100,000 to 200,000 new units in 2013. The overall forecast from Consensus predict that Nokia will sell somewhere between 30 million to 35 million next year.
It’s important to point out that even if China’s market was to have an impact in Nokia sales, the markets in Europe and the U.S. would still be more significant. Although Microsoft Corporation (NASDAQ:MSFT) claimed that sales for the Windows phone have quadrupled in 2011, Morgan Stanley (NYSE:MS) reminded us that the Nokia Lumia was only marketed in just five countries which means it made just a small margin.
Nokia Corporation (ADR) (NYSE:NOK) may never enjoy the same magnitude of success that they once enjoyed many years ago, but that doesn’t mean that it’s all over for the company.