Nokia inks $2b in Chinese retail deals

Nicole McCormick
06 Apr 2010


Nokia has renewed two Chinese handset distribution contracts, including one with China’s largest mobile retailer PTAC, worth more than $2 billion.


It said PTAC – also known as China Postel - would buy mobile phones worth more than $1 billion from Nokia in 2010, AFP reported


Nokia valued a second renewal contract with Telling Telecom Holding also at more than $1 billion.


But the deal with China Postel – Nokia’s partner since 2007 - has shrunk for the third year in a row.


Last year, Nokia sold mobile devices to PTAC worth about $1.76 billion, while sales to PTAC in 2008 amounted to around $2 billion.


“It’s a good sign whenever Nokia gets a deal in China, [but] the fact that the value of deals has fallen means that competition there is tightening,” a FIM analyst said.


Nokia said China PTAC can also develop 3G products and expand into rural markets in China, under the latest deal.


China was Nokia's third largest market in 2009, with flat revenues of $8.6 billion.


Nicole McCormick

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