Nokia, the world's top mobile phone maker and a major telecoms equipment maker, yesterday said it recorded strong sales in China last year thanks to the country's rapidly growing mobile communications sector.

The firm's net sales in China surged 44 percent year-on-year in 2004 to reach US$3.6 billion, said David Ho, president of Nokia (China) Investment Co Ltd.

Nokia's exports from its facilities in China soared to US$3.3 billion last year, up 56 percent year-on-year.

That has helped Nokia maintain its position as the largest exporter in China's mobile communications sector, Ho said.

Nokia's total exports from China in the past five years have exceeded US$14 billion.

Its local purchases in China reached US$3.1 billion last year.

Jorma Ollila, president and chief executive officer of Nokia, said the year 2004 was a banner year for Nokia's business in China and he is very bullish about the Chinese market.

"We are expecting China will become the largest market for Nokia in the coming three years," he told a press conference marking Nokia's 20th anniversary of business in China yesterday.

Currently, China is Nokia's second largest market.

According to Ollila, China's contribution to Nokia's global net sales over the past 10 years has averaged 9 percent.

Ollila vows to increase investment in China to maintain Nokia's leadership position both in the country and globally.

"Nokia's success is actually reflecting the rapid development of China's mobile telecoms industry and solid growth of the Chinese economy, and the continuous and valuable support from our Chinese partners," he said.

"We are part of China's success, and we are very proud of that."

By 2004, Nokia's accumulated investment in China stood at US$2.18 billion.

Since January 2004, Nokia has maintained its No 1 position in China's mobile phone market, staying in front of arch rival Motorola.

The firm also said it was the largest 3G (third generation) mobile telecoms equipment provider in Asia and the Greater China region.

Nokia has provided 3G equipment to the top three cellular operators in Taiwan Province and major operators in Hong Kong.

Chinese mainland authorities have yet to award operators licences to deploy 3G networks.

Ollila said he believed the licensing is likely to occur this year and 3G network deployment will begin in 2006.

Ollila announced Nokia has already begun producing 3G products including mobile phones and network equipment in China.

The move is aimed at supporting the global market and preparing Nokia for the upcoming 3G roll-outs in China.

The introduction of 3G in China will create big opportunities for Nokia to grab more market share, said Colin Giles, senior vice-president in charge of Nokia's customer and marketing operations in Greater China.

Analysts estimate Nokia holds about a 20 percent share of China's mobile phone market.

Globally, its market share is more than 30 percent.

(China Daily February 24, 2005)