Nokia gains handset share in China
(Shenzhen Daily/Agencies)
Updated: 2005-11-23 09:35

Banc of America Securities said Finnish mobile phone maker Nokia stands to benefit from an improving market in China.

Both the Chinese wireless infrastructure and handset markets are off to a strong start in the fourth quarter, the firm said, and Nokia was seen as the primary beneficiary at a recent trade show in Hong Kong.

“After a lackluster first nine months, our checks indicate a growing market in China in the fourth quarter,” it said.

“We believe spending has accelerated, benefiting mostly GSM vendors Ericsson and Nokia. Local suppliers Huawei Technologies and ZTE Corp. seem to be gaining share as well.”

The research firm highlighted recent handset market-share gains for Nokia, Lenovo and “to a lesser degree” Motorola.

“Nokia continues to dominate and gain market share, while Motorola has improved slightly at the expenses of local Chinese vendors,” it said.

In the wireless equipment sector, Banc of America’s top “buy”-rated picks are Nokia and Avaya, a leading telecommunications company, with price targets of US$20 and US$15, respectively.

The firm’s least favorite picks are Ciena and Lucent Technologies, both rated at “neutral” with respective price targets of US$2.25 and US$3.