Nokia Shanghai Store: As the largest city by population in China, it is safe to say that tech companies, including Nokia Corporation (ADR) (NYSE:NOK) and Apple Inc. (NASDAQ:AAPL), are excited about what the area has to offer.
However, it appears that Nokia is about to leave the city behind. On Thursday, Nokia confirmed to ZDNet that its Shanghai store has been closed for a few days. As the company’s largest store in the world, this is a blow to the company. It’s worth noting that Apple also has stores in Shanghai.
Nokia spokesperson Brett Young shared this information with ZDNet:
“Nokia is focusing on growing its presence in operator and third-party retail outlets, rather than through our own physical stores. We are, of course, also continuously beefing up our online presence. With this in mind, our store in Shanghai was closed on 31 March.”
As you can see, Nokia Corporation (ADR) (NYSE:NOK) didn’t waste any time making this decision. The photo below is of an Apple Inc. (NASDAQ:AAPL) stores in Shanghai.
While Nokia has decided to vacate Shanghai, hoping to pick up sales elsewhere, this is not the case with its competitors. For example, Apple Inc. (NASDAQ:AAPL) strongly believes that China could be its biggest market in the future. For this reason, the company is not about to close down its Shanghai stores–Apple bulls can remain calm.
This may be disappointing for Nokia Corporation (ADR) (NYSE:NOK), but it was a move that makes sense for the once dominant smartphone company. According to the same ZDNet piece, “the move to Windows Phone and falling Symbian sales saw Nokia’s device and service net sales in China decrease from $1bn in the fourth quarter of 2011 to $213m a year later.”
As you can see, things are not going well for Nokia in this part of the world. This is just one of the many reasons why Apple Inc. (NASDAQ:AAPL) has been able to pickup market share as of late.
To sum up this story, Nokia is leaving Shanghai behind in terms of its retail presence while Apple forges ahead with three stores in the city.
What do you think about this decision by Nokia Corporation (ADR) (NYSE:NOK)? Will it benefit Apple Inc. (NASDAQ:AAPL)? Share your thoughts in the comment section below.
Check back here for more updates on Nokia Shanghai Store.
DISCLOSURE: I have no positions in any stock mentioned.
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