Nokia Targets Regional Success
The Middle East remains a key market for Nokia and the handset vendor intends to regain its strong position in the region. Nokia's general manager for the Lower Gulf region highlighted a renewed marketing strategy and push for the Windows smartphone operating system (OS), which all its smart devices use. Having held onto a large share of the market, BMI believes Nokia is building on an already strong reputation, but faces fierce competition from the likes of Samsung and HTC.
Nokia's popular handsets had held around 50% of the handset market in the Middle East for several years and even now the region punches above its weight in terms of sales to the region. Nokia reported that 15.4% of its handset sales were in the Middle East, equivalent of EUR420mn. This is a significant number considering mobile subscriptions in the area account for just 4% of the global total. According to the UAE's TRA, Nokia devices accounted for 56.4% of handsets registered on networks in Q213.
While this is a very positive sign for the vendor, the key point is whether or not consumers continue to buy its devices and replace their existing handsets with Nokia's latest devices. BMI believes Nokia's strength in the country, a trend we believe is reflected across the region, lies in its established Arabic interface and content. In addition, migrant workers in the country are likely to have selected Nokia's lower end handsets, which have longer replacement cycles and a lower average selling price.
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|Nokia Sales By Region|