Nokia unveils record phone order worth $2.5 bln

By Staff
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HELSINKI, May 11 (Reuters) Nokia, the world's biggest mobile phone maker, unveiled the largest phone order in its history on Friday to supply handsets in China in a deal worth HELSINKI, May 11 (Reuters) Nokia, the world's biggest mobile phone maker, unveiled the largest phone order in its history on Friday to supply handsets in China in a deal worth $2.5 billion.

The order from China Postel, China's largest mobile phone wholesaler, to supply phones this year represents a milestone for Nokia in its No. 1 market. Analysts say the order could represent around 20 million phones.

China is the world's second biggest mobile phone market after the United States.

The Finnish firm, which sells more than a third of all mobile phones across the world, has a strong position in emerging markets like China, thanks in part to its efficient distribution system.

Its share of the Chinese market topped 35 percent in late 2006, according to market research firm GfK.

Nokia said the companies planned to deepen their strategic ties. China Postel has distributed more than 37 million Nokia mobile phones across China since 1998.

As the $2.5 billion agreement covers the full year some of the phones have already been delivered, Nokia said.

With Nokia's global average sales price the order would amount to around 20 million phones, but analysts said the average sales price in China was somewhat lower.

Last September Nokia and China Postel said the Chinese distributor was expected to buy about 1.5 billion euros ($2 billion) worth of handsets from Nokia in 2006.

''More than anything, this is about the retailer and Nokia wanting to communicate how important this relationship is for them. They want to flag their cooperation,'' said Carnegie analyst Lauri Rosendahl.

''It is a very important market for us. It was our largest market in 2006 by turnover,'' said a Nokia spokeswoman, Eija-Riitta Huovinen.

Nokia is benefiting from its early entry into fast-growing emerging markets, where it often has a market share of more than a 50 percent.

Shares in Nokia were 0.5 percent lower at 18.25 euros by 1048 GMT, in line with softer DJ Stoxx European technology index.

REUTERS SR HS2040 .5 billion.

The order from China Postel, China's largest mobile phone wholesaler, to supply phones this year represents a milestone for Nokia in its No. 1 market. Analysts say the order could represent around 20 million phones.

China is the world's second biggest mobile phone market after the United States.

The Finnish firm, which sells more than a third of all mobile phones across the world, has a strong position in emerging markets like China, thanks in part to its efficient distribution system.

Its share of the Chinese market topped 35 percent in late 2006, according to market research firm GfK.

Nokia said the companies planned to deepen their strategic ties. China Postel has distributed more than 37 million Nokia mobile phones across China since 1998.

As the HELSINKI, May 11 (Reuters) Nokia, the world's biggest mobile phone maker, unveiled the largest phone order in its history on Friday to supply handsets in China in a deal worth $2.5 billion.

The order from China Postel, China's largest mobile phone wholesaler, to supply phones this year represents a milestone for Nokia in its No. 1 market. Analysts say the order could represent around 20 million phones.

China is the world's second biggest mobile phone market after the United States.

The Finnish firm, which sells more than a third of all mobile phones across the world, has a strong position in emerging markets like China, thanks in part to its efficient distribution system.

Its share of the Chinese market topped 35 percent in late 2006, according to market research firm GfK.

Nokia said the companies planned to deepen their strategic ties. China Postel has distributed more than 37 million Nokia mobile phones across China since 1998.

As the $2.5 billion agreement covers the full year some of the phones have already been delivered, Nokia said.

With Nokia's global average sales price the order would amount to around 20 million phones, but analysts said the average sales price in China was somewhat lower.

Last September Nokia and China Postel said the Chinese distributor was expected to buy about 1.5 billion euros ($2 billion) worth of handsets from Nokia in 2006.

''More than anything, this is about the retailer and Nokia wanting to communicate how important this relationship is for them. They want to flag their cooperation,'' said Carnegie analyst Lauri Rosendahl.

''It is a very important market for us. It was our largest market in 2006 by turnover,'' said a Nokia spokeswoman, Eija-Riitta Huovinen.

Nokia is benefiting from its early entry into fast-growing emerging markets, where it often has a market share of more than a 50 percent.

Shares in Nokia were 0.5 percent lower at 18.25 euros by 1048 GMT, in line with softer DJ Stoxx European technology index.

REUTERS SR HS2040 .5 billion agreement covers the full year some of the phones have already been delivered, Nokia said.

With Nokia's global average sales price the order would amount to around 20 million phones, but analysts said the average sales price in China was somewhat lower.

Last September Nokia and China Postel said the Chinese distributor was expected to buy about 1.5 billion euros ( HELSINKI, May 11 (Reuters) Nokia, the world's biggest mobile phone maker, unveiled the largest phone order in its history on Friday to supply handsets in China in a deal worth $2.5 billion.

The order from China Postel, China's largest mobile phone wholesaler, to supply phones this year represents a milestone for Nokia in its No. 1 market. Analysts say the order could represent around 20 million phones.

China is the world's second biggest mobile phone market after the United States.

The Finnish firm, which sells more than a third of all mobile phones across the world, has a strong position in emerging markets like China, thanks in part to its efficient distribution system.

Its share of the Chinese market topped 35 percent in late 2006, according to market research firm GfK.

Nokia said the companies planned to deepen their strategic ties. China Postel has distributed more than 37 million Nokia mobile phones across China since 1998.

As the $2.5 billion agreement covers the full year some of the phones have already been delivered, Nokia said.

With Nokia's global average sales price the order would amount to around 20 million phones, but analysts said the average sales price in China was somewhat lower.

Last September Nokia and China Postel said the Chinese distributor was expected to buy about 1.5 billion euros ($2 billion) worth of handsets from Nokia in 2006.

''More than anything, this is about the retailer and Nokia wanting to communicate how important this relationship is for them. They want to flag their cooperation,'' said Carnegie analyst Lauri Rosendahl.

''It is a very important market for us. It was our largest market in 2006 by turnover,'' said a Nokia spokeswoman, Eija-Riitta Huovinen.

Nokia is benefiting from its early entry into fast-growing emerging markets, where it often has a market share of more than a 50 percent.

Shares in Nokia were 0.5 percent lower at 18.25 euros by 1048 GMT, in line with softer DJ Stoxx European technology index.

REUTERS SR HS2040 billion) worth of handsets from Nokia in 2006.

''More than anything, this is about the retailer and Nokia wanting to communicate how important this relationship is for them. They want to flag their cooperation,'' said Carnegie analyst Lauri Rosendahl.

''It is a very important market for us. It was our largest market in 2006 by turnover,'' said a Nokia spokeswoman, Eija-Riitta Huovinen.

Nokia is benefiting from its early entry into fast-growing emerging markets, where it often has a market share of more than a 50 percent.

Shares in Nokia were 0.5 percent lower at 18.25 euros by 1048 GMT, in line with softer DJ Stoxx European technology index.

REUTERS SR HS2040

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