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08.29.05
Nokia
Finishes Second Chinese R&D Center
 By
David Utter
The Finnish handset maker has established a research and development center in
the city of Chengdu.
The chase for China's rising middle class continues, as Nokia adds a second R&D
center to its presence there. Nokia plans to develop "mobile applications based
on 3G and IP Multimedia Subsystem for both Chinese and global markets," the company
said in a statement.
Demand for consumer electronics and advanced services continues to increase in
China. Companies like Microsoft and Google have begun to battle for the lucrative
search market, while eBay attempts to maintain its presence in the face of stiffer
competition from Yahoo in the online auction arena.
These companies see China's market as second only to the United States, and most
importantly, they see rapid growth in its numbers. For Nokia, a market that adds
users in the millions rather than the thousands offers it the prospect of building
farther upon its lead as the world's top handset maker.
Big growth equals big returns, and investors love to see that kind of growth in
companies. Being atop a market can mean slowdowns unless a company finds a way
to move new customers into the pipeline. Nokia seems to want to do that in China
by increasing R&D with a focus on the technology available to its potential customers
there.
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