Nokia and China Mobile Get Serious


The Dec. 5 news coming out of Nokia's Finnish headquarters announcing its partnership with China Mobile gave shareholders a big-time boost. As it turns out, making Nokia's Lumia 920T smartphone available to China Mobile's 700 million customers was just the tip of the iceberg.

Granted, it's early, but Lumia 920T sales are off to a rousing start, and the potential seems almost limitless. You've likely heard that and Nokia partner AT&T both sold out of their online stock of Lumia phones in the U.S. And with Nokia's variety of smartphone offerings at different price points, its product lineup remains a key differentiator from one of the leaders in the industry, Apple's high-end iPhones. Now the 920T is getting an extra boost from China Mobile.

The Chinese are going to love this
For American consumers, it's difficult to imagine paying full price for smartphones -- plopping down $350 for the latest Google Nexus? Not likely. Apple's iPhone 5 and the Samsung Galaxy S III are even more expensive, though the subsidies paid by domestic mobile carriers may end at some point (see T-Mobile's decision to carry iPhones without a subsidy).

Which brings us to the latest news coming out of China. China Mobile is taking pre-orders of the Lumia 920T at the $740 price point until it receives stock from Nokia in January of 2013. However, China Mobile announced that it intends to subsidize the cost of the 920T for customers that sign up for a two-year data plan. What'll the Lumia cost customers, after subsidies, in China? All of 1 yuan.

Now that's a deal
At about $740 a pop, the potential volume becomes astronomical when that same phone is offered to customers for what amounts to free. Add the Chinese Lumia smartphone giveaway to Nokia's growing list of upsides, and Nokia's prospects in 2013 are getting seriously interesting.

Nokia's banked its future on its next generation of Windows smartphones. Though early returns look positive, take a look at Motley Fool analyst Charly Travers' new premium report before diving in. The in-depth analysis digs into both the opportunities and risks facing Nokia to help investors decide if the company is a buy or sell. To get started, simply click here now.

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Fool contributor Tim Brugger has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple,, China Mobile, Google, and Microsoft. Motley Fool newsletter services recommend Apple,, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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