Nokia continues open channel push in US

Some analysts believe US consumers don’t like the Symbian OS, Greengart said, but he pointed out that the smartphone market has evolved on a different trajectory than the rest of the world. Keying off of the initial Palm Treo, US smartphone users have tended towards larger form factors with fully functioned keyboards.

“One thing is clear: Selling a smartphone that doesn’t have a QWERTY keyboard (or touchscreen) to US consumers is exceedingly difficult, and AT&T retail salespeople are definitely not up to the task,” Greengart said in an email interview.

Nokia product manager Ira Frimere said that Nokia’s US strategy is primarily targeting “tech leaders” and the “tech-stylist” community. The manufacturer’s top goal is to increase choice to this community through features and apps and to get them out as quickly as possible through the open channel, he said. The three devices will be deployed through Nokia retail outlets and online store and through independent and national retail distribution customers, including Best Buy, Amazon.com and Dell.com.

“We have quite a few sales channels, and [they are] growing,” Frimere said. “As the word of mouth spreads about the power of unlocked devices and the freedom they offer consumers who don’t necessarily have to sign up for a contract to get a high-end device, [demand] is definitely growing.”

It might not be in the carrier’s best interest to let consumers sign up for a contract for a high-end device, Greengart said. Unlike e-mail-centric smartphones, much of the multimedia functionality that Nokia’s Nseries devices are famous for don’t directly add to carrier revenues. “Given a choice between subsidizing a phone that generates a guaranteed $30-per-month data charge versus subsidizing an expensive device that helps consumers take exceptional photographs, carriers have gone for the money every time,” he said.

On the other hand, it might have been entirely Nokia’s decision to eschew carrier relationships, according to David Chamberlain, principal wireless analyst at In-Stat. Joining forces with a carrier would entail not only agreeing to its subsidies but also relinquishing power over the Nokia brand. Furthermore, given Nokia’s lack of support for CDMA in its higher end devices, Nokia would invariably isolate half of the market by only approaching GSM operators.