Sector shake-up forces Nokia to change tack

As the world's largest mobile phone maker, Nokia has enjoyed an approximate 40 percent share of the global market. In China, the company has also gained unparalleled success by outselling its international peers as well as hundreds of Chinese players. That has helped China to become Nokia's largest single market since 2005.

However, as new competitors such as Apple Inc and Google Inc enter the market, Nokia's dominant position has been seriously challenged. In response, the company last year announced that it would turn itself into an Internet company and launched an online platform called Ovi, in an effort to secure revenue outside of its handset manufacturing business where profit margins have been declining. On the eve of Nokia's transition, Olli-Pekka Kallasvuo, chief executive of the company, came to China and shared his views with China Daily reporter Wang Xing about Nokia's new strategy in the world's largest Internet and mobile phone market.

Q We all know that China launched its telecoms restructuring scheme just a couple of months ago. What is the outlook for Nokia China after this restructuring?