Nokia sees mobile phone rivals emerging in China

Nokia is seeing small local rivals entering the Chinese market, filling a gap left by Motorola, a Nokia executive quoted by a Reuters report said.

'Last year Motorola was aggressive, but not any more. This year we have come to see Chinese rivals using this chance,' Nokia's China head, Colin Giles, was quoted as saying.

'There have been very small local players appearing in the market.'

Motorola, the world's second biggest phone maker behind Nokia, has suffered the effects of sharply falling phone prices after it tried to hold on to its market share amid stiff competition in emerging markets and against Nokia, which leads in low-cost phones, the Reuters report said.

Nokia has felt the benefits of an early entry into emerging regions, including China, where it often has market shares of more than 50%, due to the efficiency of its distribution system, the report added.

Nokia's Giles was also quoted as saying that it was difficult to say if Nokia had benefited from Motorola's problems but it had a winning formula with a network of 40 regional distributors in China, enabling the supply of phones all over the country.

He added Nokia had been involved with developing the Chinese 3G standard TD-SCDMA for several years and is set to begin manufacturing TD-SCDMA phones for the market and will announce more details by June next year, the report said.