The Chinese smartphone market is the largest and “most lucrative” in the world. While the stats from China are interesting, the players are enormous and the competition is high. Thus, this market is practically not as interesting as its figures imply. While Samsung is managing to hold on to its own in China, Apple has dropped down the pecking order. The likes of LG and Nokia does not have a real chance. This fueled speculations that Nokia will close its R&D center in Beijing next year.
However, Nokia said that the news is not true. According to the company, the adjustment in Nokia’s R&D centers is part of its global strategy to improve operational efficiency. Nokia stated that it remains a top competitor in China and it believes in the “innovation in China, and the world.”
According to Nokia’s second-quarter earnings report for the 2019 fiscal year, Nokia’s second-quarter net sales were $6.341 billion, up 7% from $5.88 billion in the same period last year. Nokia’s president and CEO said that Nokia’s second-quarter performance was strong. This is mainly due to the continued 5G demand, competitive end-to-end solutions and enhanced operational execution. Based on the above positive factors, Nokia confirmed that the 2019 annual performance guidance target remains unchanged.