Nokia closes flagship store in China

Nokia has closed its flaship store in Shanghai as it continues to struggle selling handsets in the People's Republic

 

Nokia has closed its flagship Chinese store in Shanghai in an effort to save costs following a decline in handset sales.

The store, which was closed on March 31, was Nokia's largest and initially opened back in 2007 when the future looked rosy for the Finnish company.

Since then however, Nokia has failed to win over Chinese consumers and, according to estimates published last year, has slipped down to seventh place in the Chinese market.

"Nokia is focusing on growing its presence in operator and third-party retail outlets, rather than through our own physical stores. We are, of course, also continuously beefing up our online presence. With this in mind, our store in Shanghai was closed on 31 March," the company said in a brief statement.

Unfortunately, the story in China is a reflection of Nokia's general performance over the last few years. Despite leading the pack when it came to feature phones, the transition to smartphones left the Finns out in the cold.

Alongside the pressure from global leaders like Apple and Samsung, Nokia also has to contend with Chinese talent in the form of Huawei, ZTE and Lenovo.

The closure of the store doesn't mean Nokia is out of the race when it comes to China. Last year the company inked a deal with China Mobile agreeing that the network would offer its flagship Windows Phone 8 handset, the Lumia 920.

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