Is Nokia’s Decision to Shift Smartphone Manufacturing To Asia Rationale

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

iPhone 12 Plagued With Serious Problems: Should You Buy It, Still?

A serious problem with Apple iPhone 12, identified recently, is good enough to give a second thought...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Last year, the world giant Telecom Equipment Manufacturer—Nokia Siemens—had declared on its website that the company is going to cut 17,000 jobs in order to reduce the cost of $1.3 billion by the end of 2013. After long struggle, the Finnish Phone maker—Nokia—once again said on Wednesday that the company is planning to cut 4,000 more jobs at its plants in Finland, Hungary, and Mexico.

Nokia net sales in Q4 last year was little more than €10 billion ($13.1 billion), up by 11% from its Q3 same year but 21% lower than same quarter of 2010—Nokia marked $12.7 billion (approx. $16.7 billion). However, Nokia dominated in mobile handset shipment last year, but its shipment is declining year-over-year.

Last year, Nokia stated in its strategy updates, “Our goal is to provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks, and the services capability to make it all work seamlessly. Despite the need to restructure parts of our company, our commitment to research and development remains unchanged, with investment in mobile broadband expected to increase over the coming years.”

The company is seeking for cost reduction which is possible after moving Smartphone assembly work to Asia. I think, Nokia is just following the similar strategy of Apple—the company’s all components’ manufacturing as well as its assembling are done in China.

Advertisements

Nokia’s vice president of the market—Niklas Savander—said, “Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive.”

Nokia has reportedly said that it is going to cut 2,300 jobs in Hungary, some 1,000 jobs in Finland, and remaining 1,100 jobs in Mexico. The company has total nine manufacturing plants worldwide and 7,100 employees in these three factories. The cut of 4,000 jobs means the loss of more than half jobs in these three factories. Whatever be the reason, but the company is now pretending after arguing that it’s the company’s strategy to speed up production in the fast-moving Smartphone market. A huge folks in US lashed out Apple for assembling its component in China–creating job opportunity  beyond the US offshore. Nokia’s decision to move their Smartphone manufacturing would reduce the cost, but it’s not the solution for the company. The company needs to rethink about its strategy over its OS, hardware, and marketing rather than jobs cuts in Finland, Mexico, and Hungary.

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Backed By First-Time Shoppers, Flipkart And Amazon Dominated Festive Online Sales in India

It seems like Flipkart and Amazon squeezed the most out of the month-long festive season in India...

Amazon Gets Slapped With Penalty As GOI Prepares To Tighten The Noose On Ecommerce Players!

In a recent move, the Indian Government slapped Amazon on its wrist for not mentioning the country of origin detail for products...

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once against proved they are the true arch-nemesis of modern-day user-privacy!

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This