Nokia turns to CDMA technology to boost US sales

17 Mar 2003

Finland-based mobile phone supplier Nokia has announced plans to expand its range of handsets in the US in an attempt to gain ground on its rival Motorola and boost its global market share to around 40%. Nokia plans to unveil several new phones at the New Orleans CITA technology fair later this week, all of which will be based on the alternative US standard CDMA technology; it has declined to give details on the new models. In 2002 Nokia generated 16% of its total sales from the US, making it the company’s largest market, but it is currently lagging behind the other equipment suppliers in the region when it comes to CDMA; in January Motorola unveiled eight new handsets with features such as colour screens, while Sony Ericsson presented its first models earlier this month, including two CDMA phones aimed at the US market.

Nokia is currently the world’s largest mobile phone maker, with a global market share of 36.8% at the end of 2002. It has turned to the US to boost sales as competition is heating up more and more in Europe, where eight out of ten people own a mobile phone. Nokia hopes that the new focus on CDMA technology will also help to boost profits; CDMA phones have an average global selling price of USD190 – USD200, while GSM phones average at USD135 – USD145.