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. Just another ex-Microsoft genius doing what he does best. Sold them his snake oil talk and then took Nokia for slow ride down beleagured street.

    I expect his bonus this year will be substantial just like the good old days in Seattle.

  2. Nokia is not doomed, unless or until Apple starts making iPod mini dumb phones with the ability to play iTunes music, videos, sync contacts lists, and other dumb phone tasks.

    If Apple were to ever do that, then the “dumb phone” manufacturers would be in serious trouble. I am not sure that Apple wants that business though…..

  3. “Nokia decided to pull the phone because it believed the X7 wasn’t going to receive enough marketing and subsidies support from AT&T”

    Are they the biggest cellphone maker or aren’t they? If they are, why don’t they act like they’re the biggest? Apple does all the marketing for the iPhone, they don’t depend on any marketing support from AT&T. Microsoft supposedly budgeted $500M for marketing for WinPhone7. Why can’t Nokia market its own products? Have they thought maybe that’s the problem? Letting other people control the marketing message?

    As for subsidies, how did Apple, with no background in phones negotiate the most lucrative phone subsidy in the industry, when the supposedly all-powerful, all-mighty Nokia can’t get anyone to help them? Anyone? Beuller?

    As for dffddf, you my sir, are in the wrong part of town. We all know Nokia’s marketshare, but we also know that marketshare without profit is useless. Who cares if Nokia is #1 with 80% share in Uganda?

    Nokia is sucking in the most important markets in the world. Nokia is sucking in North America. Nokia is sucking in Japan. Nokia is sucking in South Korea. Nokia is known in China for making cheap phones, where brand means everything. Nokia’s strategy in these critical markets are a failure.

  4. @Nokia fan, people show respect, when those people show respect to them. Oli Pekka and Antsi are on record for dissing Apple. They got what they deserve.

    Apple fans know exactly where they came from 10 years ago, that’s why they care so much about the crap that Nokia and Dell and others have thrown at them.

  5. There’re not doomed. The markets are changing, so they have to change. But they’ll still be dominant in other regions making cheaper phones. Money is money. They’ll survive.

    They could also come out with something really good with MeeGo. They have many loyal customers in Europe, Asia Proper, and Africa.

  6. Nokia was a paper manufacturing company before it entered the mobile phone business. It was so successful that it became the number one phone manufacturer for many years before the smartphones threatened to its very survival. Its foray into the smartphone so far has been dismal and it is likely it would be eclipsed by more nimble players.

    The smart thing for Nokia to do is to revisit the paper industry and comes out with a smart toilet paper.

  7. @ dffddf,

    Nokia does make the most cell phones in the world. Way more than any other cell phone maker.

    Nokia is losing money doing it. Nokia’s other projects are turning a profit but it’s world leading, low end cell phone business is losing money. Lots of money.

    As a cell phone maker, Nokia is doomed just as Dell is doomed.

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