Nokia makes US top priority

Feb 25 2006 - 02:14 PM ET | Nokia

Nokia is the worldwide top mobile phone maker, but its sales lag in the US market. The company's incoming CEO, Olli-Pekka Kallasvuo, is making the US his top priority. Kallasvuo will become CEO on June 1st when Jorma Ollila steps down. Red Herring reports on the story:

“In mobile phone operations, we aim for leadership in everything,” he said. “If you aren't the leader in each sector and segment, you will easily lose out. You cannot be strong in one area and just take part in another.”

The handset market share leader in the US is Motorola, thanks mostly to the RAZR and their other clamshell handsets. Nokia was slow to embrace the clamshell form factor despite its huge popularity. Also differentiating the US market from the rest of the world is the role of wireless carriers. To have a successful handset in the US a carrier distribution deal is necessary.

Just last week Nokia announced a partnership with Sanyo to create CDMA handsets. Other acquisitions and partnerships may be on the way, according to Mr. Kallasvuo.