New York — Renowned mobile device manufacturer Nokia has started to forge alliance for the launch of its first Windows Phone 7 devices, and the first pick is China’s largest mobile phone carrier as the handset maker tries to avert competition from Android devices and Apple’s iPhone.
So far, Nokia has not disclosed any firm dates about when it plans to bring its first Windows Phone-based smartphones to market, but it is already queuing up launch partners. At a speech in Beijing last week, Nokia executive VP Colin Giles announced the company would be partnering with China Mobile to launch Windows Phone handsets in China–the first time Nokia has announced a carrier partner for the new devices.
Giles did not disclose any timeline for the Windows Phone devices’ launch, but only said that the phones would be launched in the future.
Amazingly, China Mobile, which is the country’s largest mobile phone service provider catering to more than 600 million subscribers that account for about two-third of China’s entire mobile phone market.
Besides, to operate on China Mobile’s 3G network, the phones will have to adopt the TD-SCDMA standard, meaning Nokia Windows Phone devices launching in China will not operate on networks of other carriers around the world.
Nokia reigns as the top selling handset manufacturer in China. But lately, the company has been striving to maintained that position as sales for Android devices and Apple’s iPhone increased, according to analysts.
Internationally, Nokia witnessed smartphone sales fall to 32% in this past quarter. But the company expects to reverse those fortunes once it begins launching smartphones running Microsoft’s Windows Phone 7 operating system. Nokia CEO Stephen Elop has said he is confident the devices will first ship later this year and then in higher numbers in 2012.
Nokia’s move to launch smartphones through China Mobile will entitle the company to tap a vast user base, said C.K. Lu, an analyst with research firm Gartner. But the devices may not attract to most customers given their estimated high price.
“Nokia’s strategy is to use Windows Phone to position its smartphones as higher-end devices,” Lu said. “But if you want the mass market, you have to drive down the price.”
He further mentioned that Android handsets have already spread into the low-end market and cost 1,000 yuan (US$157) to buy an Android device. A user would then need to buy the SIM card separately along with a service package. In comparison, Nokia’s Windows Phone 7 devices will probably cost at around $300, according to Lu.
“I think this Windows Phone 7 will help them, but I do not think it will have a big effect,” he added.
Despite Nokia’s stumbling sharply in the smartphone markets in western countries–including a near-complete withdrawal from the North American Market–Nokia remains the top handset maker in the Chinese and Asian market, although it is facing challenges from companies like ZTE and Huawei.
Nokia has stated it plans to dispatch its initial shipment of Windows Phone devices in 2011, with more devices joining the line in 2012.