Nokia’s global president and CEO Olli-Pekka Kallasvuo has not ruled out that the launch of Apple’s iPhone in India may have an impact on the Finnish giant.
NEW DELHI: Nokia’s global president and CEO Olli-Pekka Kallasvuo has not ruled out that the launch of Apple’s iPhone in India may have an impact on the Finnish giant.
Kallasvuo was addressing a media roundtable here on Thursday during his fourth visit to India. He met senior government representatives in New Delhi during the day including the finance minister P Chidambaram and communications minister A Raja.
India is the second largest handset market for Nokia, while China is top of the list. “India is a critical market for us,” the Nokia chief said. He also pointed out that it is not accurate to call India an emerging market any longer, as it is a leading market in many ways. The company is expected to announce local initiatives in entertainment, education and agriculture for the India market soon. Among others, Nokia Music Store in India would be a priority for the company in the second half of the year.
Replying to this newspaper’s question on whether iPhone’s proposed launch in India would impact Nokia in any way, Kallasvuo said, “That would mean one more competitor, and would have an impact.” He added that every device, that increases customer interest, would have an impact on the market. On how Nokia plans to deal with the iPhone challenge, he said it would be done through distribution, branding and availability at all price points through the company’s comprehensive portfolio. Vodafone and Bharti have already announced a pact with Apple to launch iPhone in India later this year.
Focusing on how mobility is important for all, the Nokia CEO spoke about the company’s intention to go rural in a big way. According to the company, brands are valued by all, including the poor. So, it’s not just the price point that is important, but value that a product offers, Kallasvuo said. The era of price being the answer for all is over in India, the Nokia officials argued.
While the mobile phone penetration in rural areas across India was only 3% in 2006, it doubled to 6% in 2007. This year, it is expected to double further to 12%. It is this potential growth path in mobile telephony in rural India that Nokia wants to tap.
Reiterating that rural markets will be a focus area for Nokia’s growth in India, it has outlined several initiatives in the areas of distribution, agricultural services and after sales and support services for this segment.
Nokia also announced that it is looking at microfinance as a major initiative to increase mobile penetration in India from the current 26%.
“India’s consumption of mobility is growing at a phenomenal pace and it has the potential to make a major contribution to the country’s socio-economic development. Nokia recognises its responsibility and our aim will be to try and bring more consumers into the folds of mobility by maximising value creation,” Kallasvuo said.
m_nivedita@dnaindia.net
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