Tuesday, October 18, 2005

Nokia breaks 200 million in China

Nokia has rolled out its 200 millionth mobile phone in China. This shows company’s manufacturing strength (strong). Actually, Nokia is now the biggest mobile phone manufacturer and exporter in China. Check more on this in this article.

Does anyone remember quaint little textile company called Levi Strauss & Co? They had the image and they had the manufacturing. They lost their image by diversifying into low-end products (trying to improve their market share) and by loosing ground for more cost-effective manufacturers. They still haven’t been able to make a real comeback.

I see the biggest threat for Nokia in this manufacturing and volume-based business model. They are in danger to slide off from the image map of consumers. Soon everybody has a cheap Nokia and the real money comes from short product runs and light development cycles, just like fashion. Could it be?


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