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Nokia signs $2bn China handset deals
06 April 2010
Two Chinese companies have ordered $2 billion worth of handsets from Nokia, but one of the orders shows a substantial decline on 2009
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Nokia
China
PTAC
Telling Telecommunication
BlackBerry
Samsung
Nokia has won two handset deals worth $2 billion in China. The Finnish mobile phone maker has renewed mobile handset contracts with China PTAC and Telling Telecommunication Holding. However, the PTAC order is believed to be significantly smaller than the company’s order in 2009.
China PTAC is likely to buy mobile devices worth over $1 billion and Telling is expected to purchase handsets valued at over $1 billion from Nokia in 2010.
Nokia generally announces such deals in China once a year. PTAC has reduced the purchases for the third time in a row. Last year, the size of the deal with PTAC was $1.76 billion, while it was around $2 billion in 2008.
China is Nokia’s third largest sales area, having had sales of $8.6 billion in 2009. The company has been facing competition in China in the top-end segment from RIM’s BlackBerry and Apple’s iPhone. In the mid and lower segments, Nokia is competing with Samsung, Motorola and local manufacturers. GTB