Business / Gadgets

Nokia sale of unit to Microsoft approved

By Yao Jing (China Daily) Updated: 2014-04-09 07:15

As for the Nokia-Microsoft case, Mei suggested the government closely supervise the deal in order to create a level playing field for all companies and a fair environment for consumers.

But analysts said the acquisition would not shake up the domestic smartphone market in the short term.

"The move will increase concerns of local mobile phone vendors, who are paying attention to overseas markets, especially the European market," said James Yan, an analyst with International Data Corp China.

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"Of course, the merger will boost sales of Windows Phone devices in the global market," said Yan.

In China, however, Nokia accounts for less than 3 percent of the market, and the Windows Phone has not gained much popularity either.

Chinese smartphone buyers have been supporting local brands, according to a consumer survey by zol, the nation's largest electronics information platform.

Popularity ratings for local companies such as ZTE Corp, Oppo Electronics Corp, Xiaomi Corp, Huawei Technologies Co Ltd and Lenovo Group Ltd surged in 2013 compared with the previous year.

Nevertheless, faced with potential challenges from foreign giants such as Samsung Electronics Co Ltd and Apple Inc, Chinese players had better be well-prepared, analysts said.

"As for the overseas market, Chinese makers should focus on brand building and marketing to compete with well-known names," Yan said. Vendors also should try to develop mobile operating systems, he added.

"Further, in order to stand up to the formidable competition, Chinese mobile makers also should join together to form a patent pool to create a stronger alliance to negotiate with Western giants," said Xiang Ligang, a Beijing-based telecom expert.

In a statement issued on Tuesday, Nokia said the entire regulatory approval process involved a "thorough review" of the company's licensing practices.

Currently, Nokia remains in a dispute with tax authorities in India. Nokia has said that dispute won't affect the closing of the Microsoft deal.

In September, Microsoft announced its $7.2 billion acquisition of the Nokia mobile phone business, with $5 billion to acquire equipment and services, and $2.2 billion to have access to Nokia's patent licensing for 10 years, according to the original plan.

As part of the deal, Microsoft will bring aboard 32,000 Nokia employees, including Chief Executive Officer Stephen Elop.

Shen Jingting and Reuters contributed to this story.