On July 20, Nokia announced in its second quarter earnings from phone shipments in China totalled only US$11.3 million, a drop of nearly 52% for the quarter and 41% year on year. Strategy Analytics reported that for the second quarter of this year, Nokia sold 88 million units worldwide, its lowest point since 1999.
This grim outlook has caused many phone distributors to stop stocking Nokia’s in favour of more popular phones such as Samsung or Apple.
Nokia CEO, Stephen Elop has acknowledged the drops are due to intense completion across all price segments and will take measures to stem the revenue bleeding.
An anonymous Nokia China sales source has said there is “only really bad news for the past six month, there is no good news.”
Conversely, the future is bright for Apple, where it is expected to start selling iPhone’s through China Mobile as soon as this year. The carrier is the largest in the world with 611 million wireless subscribers with 68% market share in China.