Nokia and China Mobile Get Serious

The Dec. 5 news coming out of Nokia's  (NYSE: NOK  )  Finnish headquarters announcing its partnership with China Mobile  (NYSE: CHL  )  gave shareholders a big-time boost. As it turns out, making Nokia's Lumia 920T smartphone available to China Mobile's 700 million customers was just the tip of the iceberg.

Granted, it's early, but Lumia 920T sales are off to a rousing start, and the potential seems almost limitless. You've likely heard that Amazon.com (NASDAQ: AMZN  ) and Nokia partner AT&T (NYSE: T  )  both sold out of their online stock of Lumia phones in the U.S. And with Nokia's variety of smartphone offerings at different price points, its product lineup remains a key differentiator from one of the leaders in the industry, Apple's (NASDAQ: AAPL  ) high-end iPhones. Now the 920T is getting an extra boost from China Mobile.

The Chinese are going to love this
For American consumers, it's difficult to imagine paying full price for smartphones -- plopping down $350 for the latest Google (NASDAQ: GOOGL  )  Nexus? Not likely. Apple's iPhone 5 and the Samsung Galaxy S III are even more expensive, though the subsidies paid by domestic mobile carriers may end at some point (see T-Mobile's decision to carry iPhones without a subsidy).

Which brings us to the latest news coming out of China. China Mobile is taking pre-orders of the Lumia 920T at the $740 price point until it receives stock from Nokia in January of 2013. However, China Mobile announced that it intends to subsidize the cost of the 920T for customers that sign up for a two-year data plan. What'll the Lumia cost customers, after subsidies, in China? All of 1 yuan.

Now that's a deal
At about $740 a pop, the potential volume becomes astronomical when that same phone is offered to customers for what amounts to free. Add the Chinese Lumia smartphone giveaway to Nokia's growing list of upsides, and Nokia's prospects in 2013 are getting seriously interesting.

Nokia's banked its future on its next generation of Windows smartphones. Though early returns look positive, take a look at Motley Fool analyst Charly Travers' new premium report before diving in. The in-depth analysis digs into both the opportunities and risks facing Nokia to help investors decide if the company is a buy or sell. To get started, simply click here now.


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  • Report this Comment On December 21, 2012, at 4:05 AM, kthor wrote:

    Nokia and RIM settle wi-fi patent dispute

  • Report this Comment On December 23, 2012, at 4:43 PM, G44ca wrote:

    Tim,

    What is your source for: "China Mobile announced that it intends to subsidize the cost of the 920T for customers that sign up for a two-year data plan. What'll the Lumia cost customers, after subsidies, in China? All of 1 yuan."?

    You seem to be the only person with that info.

  • Report this Comment On December 23, 2012, at 5:32 PM, Same1234 wrote:

    According to taobao.com in China,

    http://s.taobao.com/search?spm=a230r.1.0.87.xYgTNu&q=%C5...

    Its website shows daily tracking each retailer sales for high-end smartphones in different cities within each province in China. The sale results of Nokia Lumia 920, Apple ( Iphone 4S, IPhone 5), and Samsung (Galaxy Note II) are as follows:

    浏览过该产品的人最终购买了 (translation in English, How many consumers actual bought each model device after they reviewed, or tested samples in a store). ASP in RMB (YUAN)

    Date Company Model Actual ASP

    Bought %

    12/21/12, Nokia, Lumia 920, 48.10%, 4555

    12/21/12, Apple, Iphone 5, 59.60%, 4812

    12/21/12, Apple, Iphone 4S, 4.30%, 3615

    12/21/12,Samsung,GLXY Note II,54.00%, 3538

    Date Company Model Actual ASP

    Bought %

    12/22/12, Nokia,Lumia 920, 50.90%, 4469

    12/22/12, Apple, Iphone 5, 60.40%, 4733

    12/22/12, Apple, Iphone 4S, 4.90% 3654

    12/22/12,Samsung,GLXYNote II,52.90% 3539

    Judging from above report, Nokia Lumia 920 sales are making a rapid progress to narrow the sale gaps among Iphone 5 and Galaxy Note II. Nokia made an intelligent decision to cooperate with China Mobile, designing the new Lumia 920T fits in with its home grown TD-SCDMA 3G network. In my humble opinion, China Union and China Mobile will help Nokia Lumia 920, and 920T gain market share in China. Even better, Chongqing mobile (重庆移动公布Lumia920T合约套餐) offers 4 subsidized plans (or contract packages) for Lumia 920T (see below in both original Chinese post, http://www.ithome.com/html/windowsphone/33101.htm, English translation). Customers are willing to sign a new 2-year contract agreement with Chongqing mobile, they can choose 4 different plans below. The lowest cash requirement from customers’ pocket is only 1 yuan for the Lumia 920T but they must pay minimum monthly charge 388 yuan for a 24-month contract commitment (bonus, restrictions are not mentioned here). However, the more down payment customers can afford, the less minimum monthly charge they will pay. Below Table is Chongqing mobile's official website published in advance the contract information to individual users.

    Down Initial Minimun Contract

    payment cash monthly commitment

    required required charge requiredmonth

    920T 1 RMB 1 RMB 388 24

    20% 800 288 24

    30% 1200 228 24

    50% 2000 188 24

    Interesting, On December 21, following the Chongqing Mobile released the Lumia920T contract packages later, Shanghai mobile (上海移动) today officially released the Lumia920T details of the package (http://www.ithome.com/html/windowsphone/33287.htm).The retail sale price of Lumia 920T is 4599 RMB for all subsidized contract packages.

    Shanghai mobile offers 200 Yuan gift shopping card when customers sign a new 2-year contract commitment before December 31 to buy Nokia lumia920T (Currently only in black available). Shanghai mobile also offers 5 packages for free of Lumia 920T (zero initial cash from consumers’ pocket) corresponding with 5 different minimum monthly charge packages with an increment of 100 RMB of each tier moving up. The lowest minimum monthly charge is 58 Yuan along with an initial cash down payment 3903 Yuan for Lumia 920T in a 2-year contract commitment.

    Below is a Shanghai mobile Lumia920T contract package details (12 subsidized plans, customers must understand bonus and restrictions in these plans which are not mentioned here).

    Shanghai Mobile announce Nokia Lumia920T contract package

    ALL cost in RMB (YUAN)

    920T Down Subsi- Minimum Contract

    sale payment dized monthly commitment

    required charge required month

    4599 1503 3096 258 24

    4599 3903 696 58 24

    4599 3423 1176 98 24

    4599 3063 1536 128 24

    4599 2703 1896 158 24

    4599 2223 2376 198 24

    4599 1023 3576 298 24

    4599 0 4599 398 24

    4599 0 4599 498 24

    4599 0 4599 598 24

    4599 0 4599 698 24

    4599 0 4599 798 24

    I have no idea why there are 5 zero down payment plans along with 5 different minimum monthly charge packages with an increment of 100 RMB of each tier moving up.

    Nokia Lumia 920 shipment draws big crowds and sell-out in China, December 23, 2012 | By Surur

    http://wmpoweruser.com/

    the huge crowd, Nokia were selling like hotcakes in Shanghai Lumia920

    http://www.microsofttranslator.com/bv.aspx?from=&to=en&a...

    I am long NOK.

  • Report this Comment On December 23, 2012, at 6:11 PM, Same1234 wrote:

    Below is a Shanghai mobile Lumia920T contract package details (12 subsidized plans, customers must understand bonus and restrictions in these plans which are not mentioned here).

    http://www.ithome.com/html/windowsphone/33287.htm

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