Nokia (NOK) May Miss Key Selling Season in China on Lumia 920T Supply Constraints
Tweet
Share
E-mail
Get Alerts NOK Hot Sheet
Join SI Premium – FREE
Nokia (NYSE: NOK) recently announced winning a key contract with China Mobile (NYSE: CHL) last year and sales of the Lumia 920T have been ongoing since the end of January.
However, shortages in shipments have left China Mobile unable to sell as many Lumia 920T devices as it would like into the Chinese New Year holiday.
According to Bloomberg data, China Mobile initially ordered about 90,000 units of the device through January 30th, with just 30,000 arriving as of late. Though the device prices for 4,599-yuan (about $738), demand was expected to be robust.
China's Lunar New Year holiday begins on February 10th this year, with a week long celebration following thereafter. Leading up to the event is a strong retail sales season not unlike that in November and December.
Missing out on the key selling season would leave doors open for the likes of Samsung, HTC, ZTE, and others to step through.
One university student in China -- as quoted by Bloomberg -- said demand is strong. People like the design and operating system, he noted. The Lumia 920 and 920T run on Microsoft's (Nasdaq: MSFT) Windows Phone 8 platform.
It's not clear when Nokia will ramp production or whether stronger shipments following the holiday will help matter, but investors will be paying close attention through the month of February for any signs of improvement.
Shares of Nokia are up in early trading Thursday.
However, shortages in shipments have left China Mobile unable to sell as many Lumia 920T devices as it would like into the Chinese New Year holiday.
According to Bloomberg data, China Mobile initially ordered about 90,000 units of the device through January 30th, with just 30,000 arriving as of late. Though the device prices for 4,599-yuan (about $738), demand was expected to be robust.
China's Lunar New Year holiday begins on February 10th this year, with a week long celebration following thereafter. Leading up to the event is a strong retail sales season not unlike that in November and December.
Missing out on the key selling season would leave doors open for the likes of Samsung, HTC, ZTE, and others to step through.
One university student in China -- as quoted by Bloomberg -- said demand is strong. People like the design and operating system, he noted. The Lumia 920 and 920T run on Microsoft's (Nasdaq: MSFT) Windows Phone 8 platform.
It's not clear when Nokia will ramp production or whether stronger shipments following the holiday will help matter, but investors will be paying close attention through the month of February for any signs of improvement.
Shares of Nokia are up in early trading Thursday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nokia to cut most of China workforce by year end, report says
- Shares in this major AI chipmakers are "inexpensive": Barclays
- UBS flags this name, sees "significant potential for stock outperformance"
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
