Nokia Failing in the States
Last quarter Nokia the worlds largest cell phone maker sold more than 100 million units worldwide, which lead to record profits. This had lead to the highest level for their shares in four years.

Nokia holds a 55 percent market share in India where an estimated 6 million buy their first cell phone every month. They hold 45 percent market share in Europe. Nokia is No. 1 in almost every part of the globe except one, the United States where it holds less than 15 percent market share.

The problem that Nokia has is that the company doesn’t make a lot of phones that work on the U.S. networks, and the ones that do run on slower technology. Wireless carriers haven’t been to hot on stocking their shelves with high priced Nokia phones that sell like candy overseas. This is because of heavy carrier subsidies basically make the phone free.

However, Nokia is fighting back with “unlocked” phones which can work with any wireless network. The only thing users need to do is remove the SIM card from their old phone and insert it in their new Nokia phone. Nokia has been trying to let American consumers know that they can stop signing contracts for yearly subscriptions with their existing service and can start paying month-to-month. Consumers aren’t limited to their choice of phones which are offered by carriers. But Americans haven’t realized this yet.

“In Europe, people are used to it,” says Michael Gartenberg, vice president and research director at Jupiter Research in New York. “But consumers here are not accustomed to purchasing unlocked, unsubsidized phones — many don’t even know they can transfer their SIM cards.”

Apple may be helping Nokia convince the American consumers to buy high priced phones starting with the iPhone but Apple CEO Steve Jobs said that he expects to sell 1 million iPhones this quarter. And LG is soon to launch their pricy $800 touchscreen Prada phone. Don’t forget about Google. They have a rumored Gphone on their way as well. So for Nokia, they need to get on their heels because they have no time to play around.

[via CNN Money]

Tags: Cell Phone, Nokia, iPhone, Prada Phone, Steve Jobs, Business

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