Nokia (the Po) said on Wednesday, the company plans to stop before the end of the year on the European market assembly cellphone, reason is that it will be the phone to production to Asia, and will further cut 4000 employees, against the company in a move aimed at smartphone industry faces fierce competition.
Nokia says the company will be released this in Finland, Mexico and Hungary's three factories in new layoffs activities, the goal is restructuring global manufacturing business to better and the apple iPhone and Android phone to compete. Nokia had announced last year will be shed 10000 staff, at present the company for a total of 130000 employees, lower than in the same period last year more than 132000 people.
Market research firm Strategy Analytics analyst Neil moss tons (Neil Mawston) says, nokia this "meaningful", and samsung (the Po), MOTOROLA (the Po) and SONY and other mobile phone manufacturer in the past few years the measures taken in accord with these companies have been on the market in Europe with large assembly factory. He said: "this is really a kind of have no stop trend. Essentially, the Asian area labor cost, land cost and other related costs, than a European) much lower. In addition, the Asian market already very close to has the largest user people, and from the supply and demand Angle for more attractive than Europe."
Nokia also said it will production to Asia market will give it the ability to more quickly launch innovative products to the market, and "eventually become more competitive."
Nokia was global mobile phone industry leaders, but the company has lost the global market leading position, and the reason is Android phones and the iPhone growing smartphone fields beyond the nokia. Since 1998, nokia has been a leading mobile phone manufacturer, but in 2008 the global market share hit 40% target later, the company's overall market share have have been gradually decline, last year fell to below 30%.
In order to reverse this trend of landslide, nokia last October, announced the launch of new Windows Phone 7 cellPhone, also is in the nokia CEO Stephen Evans the roper (Stephen Elop) announced and Microsoft (the Po) reached cooperation of 8 months later, this means that a major strategic transformation, the reason is nokia adopted a new cell Phone in the Windows operating system. But analysts pointed out that may need a few quarters time to for nokia to Windows Phone 7 if the cell Phone to measure success.
Last September, nokia has said to adjust the manufacturing scale in Europe, and the product manufacturing to Asia, to reduce cost and enhance their competitiveness. By the end of last year, nokia has already closed in Romania crewe, northern city of the factory.
Because of the same strategy adjustment, nokia in last year will also asia-pacific headquarters from Singapore moved to Beijing, with more joint consumers. Nokia is responsible for market sales executive vice President Nicholas gaza wendel (Niklas Savander) said: "will equipment assembly activities to Asia, for the purpose of speeding up the pace of the products listed. Through cooperation with suppliers, we believe that we can more quickly will innovation products into the market, and ultimately more competitive. We know this adjustment is difficult for our employees, so, we will be in the restructuring period to the employees provide all kinds of efforts to help."
Nokia quarterly results released last month, said last year in the fourth quarter, the company global smart cellphone sales decline 23% year-on-year, net income up dropped 20% to 10 billion euros ($13.11 billion)
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