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Technology Stocks : Nokia (NOK)
NOK 6.500+1.9%Dec 19 3:59 PM EST

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From: E_K_S9/3/2013 12:38:44 PM
   of 34857
 
The China connection - looks like a win/win for both NOK & MSFT

Nokia's big remaining asset is the NSN network infrastructure business especially what is built and operated in China. The network biggest customer is China Mobile. It looks like this is Microsoft's way to enter China. NOK builds the wireless infrastructure and makes money, while MSFT provides China Mobile (1) the smart phones and more importantly (2) the services in the cloud for all of those Chinese customers!

This Could Be Huge: China Mobile To Subsidize Lumia 920

China Mobile is the world's largest mobile phone carrier company with 707 million members. The company has an interesting habit. While China Mobile will not subsidize most phones, the company sometimes offers subsidies for certain select phones. For example, earlier this month, the company's president Li Yue hinted that iPhone 5 would not be subsidized by China Mobile because Apple's demands were not reasonable. Because China Mobile is mostly owned by the Chinese government, it will be very picky about which phones it subsidizes and which phones it doesn't subsidize. Back in August, China Mobile announced that it has a set-budget for phone subsidies and the limit for the year 2012 was 26 billion Yuan, which can be translated in $4.1 billion. Because of the limit, it is very important for a company to have its phones to be included in the subsidized group. It is obvious that subsidized phone models will sell far more copies than the phones where the users have to pay the full price and subsidies usually have no additional cost for the phone makers.


SO MSFT just acquired a bunch of Chinese customers and based on their hardware cost & license fees, they should be able to under cut Apple big time (maybe as much as 40%). 707 million customers is a huge market too.

EKS
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