Feeds

Nokia shutters Shanghai store as Chinese stay away in their billions

Smell of death putting them off, perhaps

Top 5 reasons to deploy VMware with Tegile

Nokia has closed its flagship Shanghai retail store in an attempt to trim costs and concentrate on other sales channels as it looks to arrest an alarming decline in smartphone sales in the world’s biggest market.

State-run news agency Xinhua posted some snaps of the shuttered store – which was opened in 2007 to much fanfare as the firm’s largest in the world – on Nanjing East Road this week.

The Finnish giant sent the following tinned statement to El Reg:

Nokia is focusing on growing its presence in operator and third-party retail outlets, rather than through our own physical stores. We are, of course, also continuously beefing up our online presence. With this in mind, our store in Shanghai was closed on 31 March.

The story of Nokia’s decline in China in many ways mirrors its malaise on the global stage. Once pre-eminent in the feature phone space, it has been unable to win hearts, minds or wallets in the People’s Republic with its Windows Phone-based Lumias as more users upgrade to a smartphone.

According to some estimates, the Finnish phone maker now sits in seventh place in China, with just 3.7 per cent of the smartphone market in 2012.

Research from TRENDforce last November seems to show, worryingly for Mr Elop, that foreign rivals Samsung and Apple - and local upstarts including Huawei, Lenovo and Xiaomi - are producing more desirable handsets.

That analysis also suggested that brand recognition for Nokia as a smartphone producer collapsed from 91.6 per cent a year ago to 38.2 per cent in 2012.

Europe’s largest technology company is still plugging away though, announcing two budget Lumia devices at the Mobile World Congress in February – the 720 and 520 – that it hopes will win over Chinese punters.

It has also signed a potentially lucrative deal with China Mobile, which will see the world’s largest mobile operator (by subscriber count) flog the two handsets as well as a variant of the flagship Lumia 920 modified for the local market. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
Ofcom tackles complaint over Premier League footie TV rights
Virgin Media: UK fans pay the most for the fewest matches
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.