As part of Nokia’s plan to reach out to the next billion consumers, the mobile phone maker has announced its plans to invest USD 280 million to establish a new manufacturing unit near Hanoi in northern Vietnam.Representatives of the Vietnamese government and Nokia had already signed a Memorandum of Understanding marking the beginning of a phase of preparations ahead of the targeted opening of the new plant in 2012.
With a wide range of price competitive phones (feature phones), Nokia has always shown strength in growing economies and emerging markets. The company is planning to extend its reach by meeting growing mobile phone demand through affordable feature phones. On top of that, the new plant is also tasked to deliver what Nokia describes as “a contemporary mobile experience”.
“I am extremely excited about this opportunity and about the support and commitment that Vietnam has offered to Nokia. This new manufacturing site will play a key role in our effort to connect the next billion to the web,” said Juha Putkiranta, Senior Vice President at Nokia.
The opportunity is huge: Almost 90% of the world’s population lives within range of a mobile signal, yet there are 3.2 billion people who do not own a mobile device. And of the estimated 3.7 billion people who do own a mobile device, fewer than half use it to access the Internet. Apparently, Nokia is looking to target 3.2 billion non-mobile user and also the existing 1.8 billion non-mobile Internet users.
Talking about the opportunities in the mobile Internet market, Esko Aho, Executive Vice President, Nokia said, ”Only about 30 percent of the world’s population is currently online, and we believe we can play a major role in connecting the next billion not just to their first phone but to their first internet and application experience.”
From what it looks, it is a win-win situation for both Nokia and Vietnam. Can Nokia connect the next billion people? Or would other alternatives like HTC, Motorola or even Apple’s rumored smaller and cheaper iPhone ruin Nokia’s plan? We shall witness an exciting battle between phone makers in Vietnam and South East Asia.
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