Nokia plans to set up a new mobile phone plant in Romania. This reflects the potential of the company in becoming a global leader.
Nokia has plans to set up a mobile manufacturing facility in Romania. Nokia expects to make an investment of about 60 million EUR in the Cluj plant. This will be the eleventh mobile device production facility of the company. It is the availability of skilled labor, efficiency, excellent inbound and outbound logistics connections, and the industrial tradition of the area, which made the company to zero in on Cluj to set up the plant, says the news published in About Electronics.
The plant will revamp by the year 2008 and will employ around 500 workers. Right now, the company is running manufacturing facilities in Mexico, Germany, Finland, Hungary and India. This decision of starting a new plant in Romania reflects the potential of the company to attain strong volume growth at the global level and rising demand for mobile devices in Europe, the Middle East and Africa.
The estimated market share of Nokia for the fourth quarter of 2006 was 36%, whereas in the fourth quarter of 2005, it was 34%. Gradually, Nokia attained general market share in Europe. The company managed to improve its lead in Middle East, European and African smartphone markets by the first quarter of 2006, making up for huge 76% of total handsets sold. The driving force behind this success is the development of the S60 mobile software suite of applications, which is based on Symbian OS.
Nokia is also targeting the booming markets of Europe, Africa and Middle East for mobile music devices with its range of smart handsets. Nokia has exported over one million units of the 3250 music phone. This phone features the S60 software and was launched in March, 2006.
Research analyst at RNCOS says, Nokia has the potential to develop its global manufacturing network. This will result in increased competitions and will provide the customers with a wide range of devices for the mid range. These factors will drive Nokia as one of the leading players in the mobile handset market globally.”
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