One of the presumed remaining strengths of Nokia Oyj (OMX: NOK1V, NYSE:NOK) had been its wide distribution network in China, capable of reaching the farthest corners of the vast country. Now as a part of its global round of cuts, it will be closing distribution centres in Shanghai and Chengdu according to an interview given to Bloomberg. This leaves the Finnish mobile maker with logistic centres only in the Eastern coastline in Beijing and Guangzhou. Some jobs will be lost as a result. The quick fall into irrelevance in China can certainly be seen in the Western parts of the country, which is supposed to be a future growth hub, where Nokia’s stands attract very little interest and those people who still remember the company wonder what happened.
The Apple and Google dominated press continues to point out that nobody should buy a Lumia product ahead of Windows Phone 8 launch, since the latest OS will not come into the then old devices. It has to be said, that since it is hardly normal for the latest system to be added into legacy products, the negative press against Nokia’s devices from this issue seems a little excessive. Anecdotal evidence from online trends and data released by sellers would suggest that Lumia’s momentum has stalled somewhat as a result. The stock nonetheless recovered slightly yesterday going into the interim report, most likely due to some short covering after it had become technically oversold.
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