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Nokia Counts On N95 To Boost U.S. Standing

Nokia reigns as the world's top cell phone maker, boasting a global market share of nearly 40% -- more than twice that of No. 2 Motorola. (NYSE:MEU) (NYSE:MOT)

But the Finnish company has had a tougher time in the U.S., where it ranks No. 4, according to figures from research firm Gartner.

Nokia aims to boost its U.S. presence with a two-pronged effort to cement a closer relationship with U.S. carriers and launch its popular N95 handset in the U.S. market.

The $700 phone -- part of a line of Nokia (NYSE:NOK) cell phones known as the N Series -- has received positive reviews and is considered one of the best all-around multimedia cell phones on the market. Nokia is aggressively promoting the phone as it expands partnerships with retailers.

William Plummer, Nokia's vice president of sales and channel management for multimedia in North America, spoke with IBD about the company's U.S. strategy.

IBD: What's unique about the N95?

Plummer: We launched our global version of the N95 in the U.S. in April and have had phenomenal success. Even so, we decided to take the device and enhance it further.

The new North American version of the N95 has a longer battery life and an upgraded processor and extended (memory) so that you're able to run multiple applications simultaneously.

And it has HSDPA (high speed downlink packet access). This is the first true 3G (third-generation network technology) device that Nokia has brought to the North American marketplace.

IBD: And how is it different from other cell phones?

Plummer: There are other devices that incorporate various different features or functions like this, but you see compromises from them. We integrated all the high value, single-purpose functionalities without compromising on any single one.

The N95 has a 5-megapixel camera with Carl Zeiss optics. When you want this to be a point-and-click high-end digital camera, it looks and feels and acts like one.

We didn't just cram a camera into a phone. We delivered a form factor that looks and feels and acts the way you want it to.

When you want it to be a phone, it's a phone.

When you want it to be a portable digital video player with dedicated keys, it looks and feels the way you would expect that to be.

When you want it to be a portable music player, you have dedicated music keys on the front.

And because it has integrated GPS and a full navigation package built into it, when you want it to be a portable navigation device mounted in your car or in the palm of your hand, it looks and feels and acts like that.

It has full HTML Web browsing and Wi-Fi (wireless networking) connectivity. People talk about the marriage of mobility and the Internet; I would say this is the offspring. It's a computer that has the power in the palm of your hand that you were seeing in a fixed desktop computer a few years ago.

IBD: So is this a phone for the road warrior or Paris Hilton?

Plummer: We've done very sophisticated consumer segmentation and built a very strong understanding of the marketplace.

In terms of our consumer segmentation, this device is aimed at what you might call early adopters, further defined as technology leaders and stylists. It's a segment that is anywhere from 8% to 12% of the population. These are the people who set trends and who change behavior, which ultimately bleeds down into the mainstream audience.

It allows us then to take the technologies we built in to these devices and achieve the scale and scope to drive those solutions into broader and broader and more mainstream oriented markets.

IBD: How would you characterize the state of Internet mobility today?

Plummer: There is something fundamental taking place in this marketplace. We are at an inflection point.

Five years ago the industry was caught up in a lot of hype about wireless Internet, mobile Internet. But the networks did not have the data speeds, and the devices didn't have the processing capability or memory life or display capability. And the services at that time were limited.

Today the promise of everything being talked about five years ago is being realized, and Nokia is capitalizing on this inflection point. Unlike promises of five years ago, the reality of today is you can take your Internet with you.

IBD: How does your Ovi service, which delivers Internet content to cell phones, fit into this?

Plummer: What Ovi is doing is making it simple and intuitive for consumers to have those experiences and provide them choice.

When Ovi launches, any individual will have the ability to create a personal experience for them. Nokia will have service solutions ranging from music to video to maps and games and beyond.

At the same time an individual will be able to customize that Ovi gateway. They can tap into their Flickr photo page or MySpace or Facebook, as an example.

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