Nokia: Not Smart Enough This Time BusinessWeek
In most of the world, Nokia ( NOK ) is synonymous with mobile phones. Whether it's building cheap handsets for emerging markets or selling sophisticated smartphones in Europe, Nokia is a dominant player, with more than 36% of global volume, according to market analyst Gartner Group ( IT ). Yet in the U.S., the Finnish giant is an also-ran.
"We are the incumbent in the world at large," says Nokia CEO Olli-Pekka Kallasvuo. "In the U.S., we are the underdog." Yet despite the challenges of a market chock-full of interesting smartphones from the likes of Apple ( AAPL ), Palm ( PALM ), and Research In Motion ( RIMM ), Nokia, which has made several previous efforts to be a top-tier handset supplier in the U.S., is making one more try to expand its toehold in the market by bringing in some high-end products. "The only possibility," says Kallasvuo, "is to push something that is good, strong, and appealing enough."
Judging from its initial efforts, Nokia should be prepared for an uphill slog. Until recently the company was represented at major U.S. carriers by only a smattering of middling phones, all but indistinguishable in the sea of Motorolas ( MOT ), Samsungs, and LGs that could be had for $50, or even free with a service contract.