Nokia is trying to boost its fledgling services business with a joint venture in China that will be given the task of launching the handset maker's Ovi services platform in the country next year.
The move in the world's largest handset market is part of Nokia's attempt to transform itself from a hardware vendor into a provider of services and content.
This has already been done successfully by smartphone companies such as Apple with its iPhone and Research in Motion with its BlackBerry. The strategy seeks to boost margins that have been squeezed by increasing competition in the handset market.
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