Nokia moves out east

24 May 2004

Nokia, the world’s leading handset manufacturer, has announced that it is to shift a significant part of its research and development activity to China as it seeks to win back market share dwindling in the face of increased competition. The vendor said that it in the future about 40% of the handsets produced by its flagship Mobile Phones Business Group would be designed and developed in Beijing. The Chinese base will specialise in producing cheap, entry-level phones for emerging markets and will also include the establishment of a specialist CDMA development facility. Whilst admitting that cheaper costs were one of the driving forces behind the far east expansion, Nokia insisted that it would not be cutting jobs at its Finnish operations.