Nokia Withdraws From the European and Chinese Market

Nokia has chosen to give up large-scale European and Chinese market share to protect their profit margins. According to foreign media reports, MKM Partners Tero Kuittinen wrote that Nokia has chosen to abandon the mass market in Europe and China
Share to protect their profit margins, a move to Motorola and Nokia to create a huge market opportunity. Nokia choose to give up in order to protect their profit margins, making the Nokia's earnings per share 0.06 euros higher than expected. This is referred to as short- sighted, Motorola, Nokia will give away to create a huge market opportunity.

The following is Tero Kuittinen the original:
Nokia's move is a short-sighted approach, although it does make the Nokia's earnings per share higher than our expectations of 0.06 euros. Nokia is a major source of profit for Apple to one-time license fee, license fee income Nokia's second quarter was 4.3 billion euros, of which the vast majority of Apple's contribution. We believe that Nokia's iPhone to get from each license fee of about 3.5 euros, while the next few years we expect this cost reduction through negotiation.

We also expect Nokia will be more active in licensing fees for the manufacturers with many challenges of Android, so this part of the licensing fees will be very high. Believe that Apple has the ability to a certain touch screen and software patent cross-licensing as a bargaining chip to negotiate with Nokia to reduce license fees.

Motorola Holdings (MMI) good prospects in China, Nokia mobile phone market in China, sales were down 12.6 million in the second quarter only sold 11.3 million. However, in retreat, while Nokia, China's 3G mobile phone sales growth is likely to exceed 10 million units.

We believe that the Android operating system market share in China's rapid increase in intelligence, has become China's largest Motorola Android phone manufacturers.

From South Korea's LG smart phone recently to reduce the projected annual production of 600 million units, due in part to the rapid development in China has not been the smart phone market made big progress.

We believe that even Apple, HTC, and Samsung's strong growth in China this summer to the winter, Nokia in the smartphone market rout to Motorola considerable room for maneuver.

Obviously, the third quarter of 2011 Nokia's smart phone sales will drop to 17 million units in the fourth quarter will be reduced to 10 million units, or even lower.

The fourth quarter of last year this figure was 28 million units. 10 million units of the decline means that Android and Apple will get a larger market share. Fourth quarter of 2011, smartphone sales are expected to reach 130 million units, if not recession, then the European economy.

We believe that the continued decline in Saipan operators will give support to accelerate the pace of Saipan, and the pace of decline may be faster than the plug thanks to a growing number of operators does not hold the confidence of Saipan.

In our view, this collapse of confidence to the Motorola tremendous opportunity in Latin America and China so that it can expand the number of smart phones on the market. Our survey shows that emerging market operators, such as Telecom Italia, China Mobile, China Unicom, Motorola is looking at the force, but six months ago, they are still a strong supporter of Nokia.