Nokia Corporation (NOK) Shortchanges China Mobile Ltd. (CHL)

Page 1 of 2

Smartphone turnaround candidate Nokia Corporation (NYSE:NOK) made headlines late last year when it said it would bring a variant of its new flagship Lumia 920 to the largest carrier in the world, China Mobile Ltd. (NYSE:CHL) . The Lumia 920T is specifically tailored to the wireless carrier’s unique 3G TD-SCDMA network, and China Mobile was even going to subsidize the device to effectively free on contract.

Not what the carrier ordered
Nokia CorporationAccording to a recent Bloomberg report, Nokia may be inadvertently shortchanging China Mobile. The Lumia 920T is awfully hard to come by right about now, which China Mobile blames on shortages on Nokia’s behalf. A spokeswoman for the carrier said that China Mobile had ordered 90,000 units through Jan. 30, and Nokia was only able to deliver a third of those.

That’s left most of China Mobile’s retail locations out of Lumia 920T inventory as we head into the important Chinese New Year holiday shopping season. Nokia said it sold 4.4 million Lumia units last quarter, comprising two-thirds of its total smartphone unit shipments. The company also conceded that it was facing supply constraints, and was having trouble keeping up with demand. Those are good signs for Nokia’s turnaround that’s still a work in progress.

There are plenty of fish in the sea
The problem is that, like all commoditized hardware OEMs, there are plenty of substitutes that prospective buyers can turn to, even within the same software platform. Nokia’s fate lies squarely on the success or failure of Microsoft (NASDAQ:MSFT) Windows Phone, for better or for worse. Microsoft is primarily tapping three OEMs for Windows Phone 8 devices: Nokia, HTC, and Samsung.

Since Microsoft exerts a lot of control over its platform, unlike Google Inc (NASDAQ:GOOG)‘s Android mess, Windows Phones are inherently more similar than the wide variety of Android variants. The whole reason why OEMs and carriers like to modify Android is in an effort to differentiate their products, and fend off commoditization. In its quest to preserve the user experience it envisions, Microsoft hinders OEMs’ ability to differentiate meaningfully.

HTC’s Windows Phone 8X looks nearly identical to the Lumia 920T, and would probably suffice for the average Chinese consumer looking for a new Windows Phone. The 8X is available on all three of China’s big carriers, including China Mobile. Samsung’s ATIV S, which also runs on the same operating system, was recently cleared by Chinese regulators, although it isn’t available quite yet. Here’s how the 8X and Lumia 920 compare (the 920T just has a different baseband) in some of the pertinent specs.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!