China Digital Wireless Secures Exclusive Nokia Distribution Agreement in Shanghai Region

Strategic Insights -

China Digital Wireless, Inc., a leading distributor of mobile phones and value-added information services in Shanghai, People's Republic of China, has reached an agreement with Nokia to become the exclusive distributor of select Nokia mobile phones for the Shanghai region. This one-year agreement, renewable annually, will allow the company to benefit from Nokia's market leadership and enhanced profitability through increased margins on Nokia unit sales. The agreement will also enhance the company's market share and brand awareness, particularly in China's rapidly growing mobile phone market, where approximately 20% of the world's mobile phone users reside.

Key Takeaways:

  • China Digital Wireless, Inc. has secured an exclusive agreement with Nokia to distribute select mobile phones in the Shanghai region, effective for one year with renewable annual terms.
  • The agreement will allow the company to benefit from Nokia's market leadership, enhance profitability through increased margins, and expand revenue and brand awareness in China's growing mobile phone market.
  • China is now the second-largest market for Nokia, with the Shanghai market considered a crucial segment in the company's growth strategy.
  • China Digital Wireless distributes various mobile phone models and provides wireless users in China access to financial information and entertainment-related services via their mobile phones.
  • By bundling financial information software with wireless phones, the company is building a high-margin subscriber base.
  • The company intends to grow revenues by expanding its subscriber base, adding fee-based services, and increasing its installed base of TV monitors used as an advertising medium.

Statistics:

  • Approximately 20% (340 million) of the world's mobile phone users reside in China, making it a focal point for major mobile phone manufacturers.
  • China is now the second-largest worldwide market for Nokia.
  • The Shanghai market is considered one of the most important for mobile phones in China.
  • China Digital Wireless distributes various mobile phone models in the Shanghai region.
  • The Chinese mobile phone market is rapidly growing.

Sources:

  • China Digital Wireless Inc
  • COMTEX (http://www.comtexnews.com)