Nokia to shut its U.S. flagship retail outlets

By siliconindia   |   Monday, 14 December 2009, 19:24 IST   |    1 Comments
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Bangalore: Nokia has finally confirmed that it will be closing both of its flagship U.S. retail outlets early next year. The stores are located in New York and Chicago, and are two of Nokia's 12 brick-and-mortar retail locations worldwide, reports Channelweb.com. Although Nokia did not respond immediately to a request for comment by Channelweb.com, the company explained in a statement, "The Flagship stores were originally conceived to inspire and educate consumers to the benefits of mobility through an innovative retail experience, and to broaden the appeal of the Nokia brand. Since opening the stores in New York and Chicago, consumer awareness in the U.S. has grown substantially. Weighing those dynamics with Nokia's clear strategy in North America, and our well-established retail channel with third parties, we will close these two stores in early 2010." In addition, Nokia will close one of its two London stores and relocate its Sao Paulo store. Nokia's first retail location opened in 2005 in Moscow. Nokia has suffered substantial financial losses this year, and U.S. consumers are also still waiting on the stateside launch of the Ovi Store, Nokia's much-touted alternative to Apple's App Store and other mobile app communities. Most recently, its CEO Olli-Pekka Kallavuo said that Nokia would still be launching phones on its Symbian mobile OS and reserving its new Maemo OS for high-end N-series devices. Kallavuo sought to put to rest rumors that Nokia would do away with its Symbian platform following hints from executives at a marketing event earlier this year. Kallasvuo at Nokia's Capital Markets Day this month said, "As an operating system, Symbian has reach and flexibility like no other platform, and we have measures in place to push smartphones down to new price points globally, while growing margins. I see great opportunity for Nokia to capture new growth in our industry, by creating what we expect to be the world's biggest platform for services on the mobile." The retail market for phone manufacturers, carriers and those with a stake in cloud computing services continues to see a number of strategies come to the fore. Apple, for example, has found success with its retail locations, and Microsoft took the brick-and-mortar retail plunge, too, opening its first location this fall in Scottsdale, Ariz.