Beleaguered Nokia cancels U.S. launch of ‘X7’ phone

InvisibleSHIELD.  Scratch Proof your iPhone 4!“In another setback, Nokia has canceled the U.S. release of a smartphone that was slated to launch exclusively this year with AT&T Inc., people familiar with the situation said,” Christopher Lawton and Shayndi Raice report for The Wall Street Journal. “Nokia had intended to debut the touchscreen phone, dubbed the X7, in conjunction with AT&T ahead of the Mobile World Congress trade show next month in Barcelona, Spain, these people said.”

Lawton and Raice report, “The X7 would have been the first Nokia smartphone launched exclusively with a U.S. carrier since former Microsoft Corp. executive Stephen Elop took over as Nokia’s CEO last September.”

MacDailyNews Take: Microsoft DNA.

Lawton and Raice report, “The unexpected cancellation leaves Nokia further behind in its effort to correct a major strategic weakness—its poor showing in the lucrative U.S. market, where it lags Apple Inc., BlackBerry maker Research in Motion Ltd. and phones powered by Google Inc.’s Android software.”

MacDailyNews Take: Lagging Android is bad enough, but if you’re lagging BlackBerry, you’re doomed.

Lawton and Raice report, “Nokia decided to pull the phone because it believed the X7 wasn’t going to receive enough marketing and subsidies support from AT&T, said one person close to the company. Nokia still plans to launch the X7 in other markets, this person said.”

MacDailyNews Take: Time for Stricken Flop, er… Stephen Elop to pull an Olli-Pekka (ha!) and announce yet another iPhone killer will be “coming along real soon now, ya hear?”

Lawton and Raice report, “While Nokia continues to stumble in the U.S., other handset makers are aggressively moving ahead with new smartphones… Moreover, Verizon Wireless will begin selling the iPhone 4 in February.”

MacDailyNews Take: Moreover? “More so” is more like it.

Lawton and Raice report, “Nokia’s Symbian operating system, which powers the X7, is seen as cumbersome and outdated. The company is building its new high-end smartphones around a platform called MeeGo, developed with Intel Corp., but that effort has been delayed as well.”

MacDailyNews Take: Nokia: MeeGo belly up.

Full article here.

MacDailyNews Take: Deer in the headlights run a very high roadkill risk.

The development of mobile phones will be similar in PCs. Even with the Mac, Apple has attracted much attention at first, but they have still remained a niche manufacturer. That will be in mobile phones as well.Anssi Vanjoki, Nokia’ Chief Strategist, November 2009

35 Comments

  1. Right, Nokia is doomed. They’re the number 1 manufacturer of mobile phones in the world.

    They have, in some regions, some 80% marketshare, where iOS has but a fraction of 1%.

    Stop fanboying and look at the data. They’re not doomed. They have made mistakes, but because they aren’t as dominant in the US doesn’t mean they’re doomed.

    Imagine, a whole world outside the US. Oooooooh, awwwwww.

  2. For years Nokia scoffed at having any real presence in the US. They didn’t need any business from those stupid Americans, they were mighty Nokia and could get along just fine without us.

    Now, after the iPhone, America is the most lucrative cell phone market because we’re the top destination for smartphones. Whereas America used to often get the hottest phones last, now we get first dibs and distribution to other nations is secondary. Low and behold, Nokia can’t get into the party because they spent the past decade ignoring those stupid Americans.

  3. Stephen Elop to Nikia board of directors:
    “Using android will not different us from the rest, let’s be unique… let’s make our own copy of iOS and not use the copy that google and palm already did.”

  4. Nokia is carrying an enormous debt load for a company with a low single digit profit margin and single digit return on Assets. Their revenue fell 18% last year causing a 75% drop in earnings.

    I don’t know whether or not they are doomed, but this company is in serious trouble if they cannot boost their profitability. Selling a gazillion cheap phones to penniless masses is not going to do it.

  5. What’s really going to be sad (for Nokia) is when these types of articles say, “where it lags Apple Inc., BlackBerry maker Research in Motion Ltd., phones powered by Google Inc.’s Android software, and Microsoft’s Windows 7 Phones.”

    THAT’s when you may as well pull the plug.

  6. Nokia the is number 1 manufacturer of mobile phones in terms of what, marketshare? That doesn’t mean jack without a healthy profit margin to go along with it, which is something Nokia doesn’t have.

    And its strategy is going nowhere.

    How do you spell Nokia? I-B-M.

  7. @dffddf
    Look my Friend,
    IOS & Even Android is Growing at a “Out of this World” Pace,
    Mark my Word. After 2011 Nokia will never again Lead the Most Lucrative segment in the Mobile Phone Business,
    The (Smartphone Segment) & there is where the Money is.
    So they can sell the Most Phones just as long as it is not the most Smartphones.
    Nokia is like Microsoft they are Yesterday’s News Anyway.

    (Apple Kicks Arse) Yeaaaaaaa

  8. dffddf,

    Dell proved that market-share means little when you are racing to the bottom of the market in terms of unit price and profit.

    As someone else so succulently put it “selling (more like giving away at this point) entry level phone to penniless masses” will net you market-share, but little else.
    To purport that Nokia is not in deep, deep trouble would be the “fanboy with blinders” position, not the reverse.

  9. Apple doesn’t want Nokia completely out of the picture. Apple doesn’t want RIM completely out of the picture. Apple doesn’t have the capacity to make 100% of the world’s smartphones. And since a higher percentage of all mobile phones sold are “smartphones” each year, that total number required keeps going up.

    The key point is that, while Nokia and RIM are still firmly “in the picture,” they are no longer major threats to Apple. The Android platform has done as much (perhaps MORE) to marginalize Nokia and RIM as Apple, thanks largely to Apple staying off of Verizon (until now). And the Android platform is not a major threat to Apple; it’s a collection of relatively small hardware makers who rely on a third party (Google) to deliver the key software for their mostly indistinguishable products. The “collective Android” just copies whatever Apple does, AFTER Apple does it, with no central leadership. Apple wants its strongest “competitor” in smartphones to be the fragmented and predictable Android platform.

    Apple cannot, and does not even want to, make 100% of the world’s smartphones; someone else has to make the rest. That “someone else” might as well be the combination of Nokia, RIM, and the gaggle that makes phones using Android (and maybe Windows Phone 7). In that environment, Apple rules the market and can sell as many iPhones as it wants to make every year, optimizing unit sales, total profit, and profit per device.

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