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Nokia plans comeback with 2015 tablet launch in China
by Staff Writers
Helsinki (AFP) Nov 18, 2014


Samsung to slash number of smartphone models
Seoul (AFP) Nov 18, 2014 - Samsung Electronics has announced plans to slash the number of smartphone models it issues next year by up to one-third as it tries to cut prices in the face of intense Chinese competition.

The strategy, confirmed by a company spokesman Tuesday, was unveiled during a presentation in New York by the South Korean conglomerate's head of investor relations, Robert Yi.

Yi said the company -- which last Thursday reported a near 50-percent plunge in third-quarter net profit following a 20 percent drop in the previous quarter -- would reduce the number of smartphone models in 2015 by between one-quarter and one-third.

The strategy is expected to be accompanied by a significant increase in the production of remaining models that can be sold more cheaply to compete with cut-price Chinese rivals.

The recent nosedive in Samsung's fortunes followed several years of stellar growth and a seemingly endless succession of record quarterly profits driven by its all-conquering mobile unit.

Its flagship Galaxy S smartphone has suffered in the high-end market from the popularity of arch-rival Apple's new iPhone 6, while its dominance of the middle- and low-end handset segment has been challenged by Chinese handset makers such as Huawei, Xiaomi and Lenovo.

For the moment, Samsung is still the comfortable leader by sales volume, but its share of the global smartphone market has fallen from 35 percent a year ago to just under 25 percent, according to Strategy Analytics.

Finnish telecom equipment group Nokia announced an unexpected return to mobile devices Tuesday with a tablet aimed at the Chinese market.

"We are pleased to bring the Nokia brand back into consumers' hands with the N1 Android tablet, and to help make sophisticated technologies simple," Nokia's head of products Sebastian Nystroem said in a statement.

It will be made by the Taiwanese technology group Foxconn -- Apple's biggest supplier -- and launched on the Chinese market in early 2015 retailing "for an estimated $249 (199 euros) before taxes," Nokia said, "with the anticipation of expanding sales to other markets".

The device, presented at the Slush technology fair in Helsinki, resembles Apple's iPad mini with a 7.9 inch (200 mm) screen and uses the Android operating system unlike its predecessor, Nokia's first tablet, the Windows-driven Lumia 2520 launched in 2013.

The Lumia had a far higher price tag of $499 (around 400 euros) when it was launched in the United States and enjoyed limited success with consumers, partly due to its Windows Phone 8 operating system which has fewer applications than its Android and Apple competitors.

Nokia's comeback was not expected, as the once world-dominating telecom company appeared set to focus on telecom services following the $7.52 billion sale of its handset division to US software giant Microsoft in April.

Nystroem described the new tablet as "a great product for Nokia fans and everyone who has not found the right Android tablet yet".

Nokia was the global leader in mobile phones before the introduction of Apple's iPhone in 2007 and the onslaught of Android phones, mainly from Samsung.

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NOKIA

GOOGLE

MICROSOFT

APPLE INC.


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