Nokia Divides Itself to Focus on Mobile Net

New corporate structure emphasizes services and software
By Nick McMaster,  Newser Staff
Posted Dec 28, 2007 4:23 PM CST
Nokia CEO Olli-Pekka Kallasvuo, who has been pushing for the firm's expansion into internet services, addresses an audience in this undated file photo.   (Getty Images (by Event))
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(Newser) – Furthering its plans to transform into a mobile Internet company, Nokia has announced a corporate reorganization into three divisions: devices, software and services, and markets. It’s the focus on software and services, Fortune writes, that’s exceptional for the world’s largest phone manufacturer, and signals the seriousness of the firm’s intentions to remain a major player as mapping, music and games change the cell phone market.

“Nokia’s been doing this for a long time, and this is just the next step in moving beyond the devices themselves,” said an industry analyst. Still, like any ambitious move, there are risks and growing pains: their Ovi internet portal has seen delays in the development of key services, and it’s uncertain how Nokia will fare with a circle of competitors wider than the traditional handset makers.