AFI BLOG: Media and Technology

Nokia Moves Subtly to Regain U.S. Share - The Wall Street Journal

Amid Competitor’s Struggles, Finnish Maker Courts Carriers, Tweaks Its Designs for America

When an archrival in a critical market stumbles, many companies are quick to declare an aggressive attack. Not Nokia Corp.

The Finnish cellphone giant was presented with a golden opportunity to expand in the U.S. when rival Motorola Inc. said Wednesday it would split in two and make its phone operations a standalone business. But Nokia, the world’s biggest cellphone maker, is being characteristically low-key.

Instead of flashy advertising campaigns or a quick burst of new products, Nokia is making mostly behind-the-scenes changes. It is cooperating with the large carriers such as AT&T Inc. that control how most phones are sold to customers in the U.S. and has started designing phones specifically for North America. Those mark big changes for Nokia, which traditionally hasn’t worked closely with carriers to tailor its phones, under the thinking that it was more efficient to sell the same goods globally.

Taking on Motorola in the U.S. is a major initiative for Nokia Chief Executive Olli-Pekka Kallasvuo, who sees it as Nokia’s biggest opportunity to add customers. With world-wide sales of €51.1 billion (about $79.8 billion), Nokia dominates Europe and parts of Asia, but its brand isn’t as widely known in the U.S. The company has a 40% market share globally, but it has only about a 10% share in the U.S., the world’s largest wireless market.

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