Nokia Cedes Top Mobile Spot in China

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Companies have just released their Q2 earnings figures, and among the things that business analysts are learning are business trends. Apple is making it big worldwide in the smartphone and tablet market. Intel and Microsoft think netbooks are tanking, but tablets are on the rise. Meanwhile, in the mobile space, Nokia is losing ground in one of the more robust markets around.

Nokia has lost its dominance in the mobile phone market in China, thanks to dropping prices of other platforms, particularly Android. As Nokia gets into the final stages of releasing its upcoming Windows Phone 7 handset, the company will have to deal with Chinese mobile manufacturers being able to churn out Android smartphones at sub $150 prices. At these rates, smartphones are already cutting into the sales of Nokia’s “dumb” phones or featurephones, which is hurting the company’s bottomline.

Nokia has reportedly sold 11 million handsets in China, but has an inventory of about 5 million with Chinese retailers. The country is fertile ground for mobile services and devices. With about a billion mobile phone users, China leads the world in terms of mobile-using population. Nokia has recently made major changes to the management team at Nokia, appointing global sales chief Colin Giles as head of its China business, noting Giles’ experience heading Nokia in China for about a decade.

But with Android and the iPhone gaining ground, will Nokia be able to sell its planned 150 Symbian handsets while they transition to Windows Phone?