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Nokia launched the newest edition to it’s N Series lineup, the N95, for European 3G networks last year. A non 3G device also called the N95 was available in the US and much tauted during the iPhone launch as an answer to Apple’s ground breaking mobile device. Many Nokia fanboys and fangirls explained how the N95 was superior including it’s 3G speed. And similar statements were made by Nokian’s themselves. The truth is that the N95 as presented in the US also worked on the slower Edge data network. Now, the FCC has approved a variant of Nokia’s N95 which will work on ATT’s US 3G HSDPA network with a clever new name, N95-3. The launch party is set, but there will be no lines of eager enthusiasts as was witnessed with the iPhone, because the launch of this new US market device will occur in London.

It’s unclear why Nokia would not launch this device from a US city. They have Flagship stores in New York and Chicago where a launch event could be staged. Apparently, they feel that a launch in London will receive more attention. For that to be true, Nokia must also believe that their US marketing team (they do have one right?) isn’t up to the job. Ouch! Of course, Nokia doesn’t have much success to point to in the US market as they’ve missed every major trend for handsets here. Nokia has the growing reputation of not listening to the market, but who can argue with their 35% global market share?

History of Nokia Failures in the US Market

Clamshell Design

It has been very clear since the mid 1990s with the popularity of the Motorola StarTac that US consumers are in love with the clamshell form factor. I owned one. And who didn’t recognize the StarTac influence on Motorola’s more recent phenom phone, the Razr. Nokia’s response to the StarTac was belligerent with their CEO proclaiming that the candy bar form was superior and Nokia would never make clamshells. Their response to the Razr on the other hand was the N76. It comes very late as the Razr craze has ended and somehow Nokia known for utilitarian design managed to make a Razr look clunky.

QWERTY Keyboard

Another trend in the US market has been the desire for QWERTY thumb keyboards used to compose email, and driven in large part by the success of Blackberry. Nokia avoided QWERTY in favor of the phone dialpad keys despite the success of Blackberry and Treo which dominated the early US smartphone market. Only recently has Nokia acquiesced on this feature with the E62, a stripped down version of the E61i.

3G on US Frequencies

Nokia’s N95 debuted in Europe early 2007, and it looks as though they plan to make the US holiday season with a US 3G HSPDA model of the N95. The issue here is that 3G frequencies in the US and Europe are different. In Europe, 3G operates at 2100 MHz and in the US the frequenices are (ATT) 1900, 950 and (T-mobile) 1700 MHz. So a 3G phone isn’t a 3G phone everywhere. The fact that the promise of WCDMA was suppose to be global interoperability apparently died a cruel death on the sword of competitive advantage. But that’s a story for another time. The bottom line is that Nokia releases phones on European frequencies about a year before they appear in the US market.

Incoming CEO OPK declarations

Despite Olli-Pekka Kallasvuo’s declarations during his initial press conferences in 2006, as the new CEO of Nokia, results haven’t demonstrated Nokia’s focus on the US market. In fact, Nokia handset sales in North America from Q1 2006 to Q1 2007 fell by 50%. This also the period during which Nokia exited it’s CDMA handset business.

CDMA Devices

One reality of the US market is the coexistence of two network technologies, GSM and CDMA. CDMA networks used by Verizon Wireless and Sprint were the first to market with 3G speed and services. Nokia has an institutional dysfunction with the implications of serving CDMA carriers. First, their abhorrence with customizing devices per operator requirements, and second, their long-standing licensing war with Qualcomm. This dysfunction caused Nokia to exit the partnership they built with Sharp to deliver CDMA devices for the US

Some have suggested that Nokia’s abandoning the higher margin US CDMA market for low margin entry handsets in India and China was a serious miscalculation. But as I’ve said, the dysfunction on this point is institutional. A member of S60’s marketing team explained about two weeks ago that the narrative inside Nokia for the US market goes something like this: We have 800 million customers outside the US and only 4 customers inside the US.

Obviously, this isn’t a true statement. There are many European Nokia devices that are imported to the US, along with newly enabled direct sales, new channels forming like BestBuy.com, and of course, the 4 referenced by the narrative, the US wireless carriers. However, trapped inside their narrative, Nokia does not appear able to evaluate the US market objectively. Perhaps Nokia should just fold up tents and exit.

iPhone Launch

The iPhone is listed as a Nokia failure in the US market, because given the long advance notice and the media buildup to Apple’s iPhone launch, Nokia marketing in the US fell flat. There was no competitive response that has registered here from the company. The best competitive response has come from the Nokia enthusiast blogosphere. Even the blogosphere missed the mark.

A feature by feature comparison of the N95 to the iPhone is nonsense. There was much made of the iPhone’s lack of 3G support which - I love irony - is astonishing given the US version of the N95 was also not 3G. And contrary to many reports from Europe, the US has a number of 3G devices. It’s just that they aren’t made by Nokia.

Given all these failures in the US market, and the focus of Nokia on the N95 as their competitive response to the iPhone, why isn’t the US 3G HSDPA version launched from a US city?

Apparently, Nokia has scheduled it’s annual Launch Event, and it’s in London on August 29th. The Launch website is intentionally cryptic and game like - hint, hint. So whether it’s convenience or tradition or short-sightedness, check the tubes in two days for the story on what Nokia reveals. Even, a simul-launch, events in both London and New York, would have been a good idea. Nokia does have a US marketing team, don’t they? It’s truly difficult to tell.

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Mmetrics have released an interesting little data snack from their smartphone user panels. The chart shows the top “mobile web” destinations in the US versus in the UK.

What’s interesting here is that five of the top ten web sites accessed from mobiles in the UK are carrier/operator sites, while the US list more closely resembles the top www sites list. There are the very consistant top three, Google, Yahoo! and Microsoft (MSN) and only two carrier/operator sites in the US top ten list. I’ve asked this question of a number of people in the mobile applications, infrastructure and operator businesses, “Is the US consumers’ entry to mobile data services impacted by the very high PC peneration rate and previous web experience in the US versus Europe?” The answers have varied and granted one should not draw conclusions from this one data point, but it validates asking the question.

The label “mobile web” creates cognitive dissonance and confusion in the marketplace. Is there a separate web? The real answer should be no, and in fact, as one observes the growth and evolution of mobile data services in the US what strikes the chord of recognition and apparently adoption are those services familiar from our web experience which add a mobile specific UI and uniquely mobile VAS (value added service) to existing behaviors.

For example, Alltel’s award winning Celltop application ties web services into a UI which works on handsets and tiny screens. Note: Celltop awards are both industry and user bestowed.

Weather, news, sports scores, stocks and new ringtones/callback tones are services combined from the web and/or the carrier/operator presented in a handset specific UI. Alltel are also running polls to ask their users which web service they’d like to see offered next through Celltop. The options include a digg feed, Gmail, NASCAR updates or horoscopes. Sounds webilicious, no?

Another example is a personal favorite, Sprint Navigation by Telenav. I love this application.

Most of you have used Mapquest, Yahoo! Maps, Google Maps or some combination of web based mapping and navigation applications. Telenav brings web services behind maps and navigation along traffic information together with GPS and voice capabilities from the handset and mobile network. The result is a powerful personal navigation solution.

First, your actual location is determined via GPS, then you have the option to type or speak the address of your destination. This is where Telenav have done a superior job of integrating with native handset strength in functionality. Screen viewing to observe navigation instructions is supremely difficult at 80 mph on a California freeway. (This is an illustration not an admission of guilt in case the CHPS are listening.) So, Sprint Navigation allows placing a call from inside the application to an automated voice search facility which locates and confirms your destination address, then returns the handset to application state on completion of the call. Your route is calculated and finally the application checks a web traffic conditions service and either reports traffic is good or reroutes to your destination, if possible.

So great! You’ve got a route, traffic considered, and now to get there you need to view the directions. Well, not nessarily. The application repeats turn-by-turn instructions periodically via voice. Using your headset or speakerphone (safety first people) you will hear updated instructions until the turn is reached or you bypass it. If a turn is missed, the application automatically informs you and recalculates the directions. That’s user fault tolerant which I often need give I suffer BADD (blogger attention deficit disorder) which is far shorter and more easily distracted than ADD or ADHD.

Here are two excellent and well adopted applications which do all the things that we’ve been told at countless events and conferences are essential to a successful application, and more importantly, they are implemented extremely well.

1. web functionality
2. augment with handset mobile network strengths
3. mobile specific UI - this might require multiple modalities (don’t ignore voice)
4. user centric design and fault tolerant

Okay, maybe the list wasn’t presented exactly this way, but it should’ve been. To all those evangelizing “the mobile web,” please stop. And reset to evangelize web services on mobile devices.

I’ll continue to try and persuade you on this logic. Stayed tuned for the next article of the series: .mobi winners and losers.

Back to the Mmetrics findings.   Well over half of the web browsing activity by smartphone users in the UK occurs on operator portals.  Well over half of the web surfing activity by smartphone users in the US is through Google.  It would be helpful to have a breakdown of the Google activity.  Is that all search?  How much is attributable to Gmail access?  Data always raises more questions.

These findings also highlight another consideration when combined with the illustrations of web services in this article.  What does it now mean to access the web from a mobile device?  Are web services through thick clients merely a interim step on the path to fully functioning web browsers on mobile devices?  I think not.  Again, with the example of Sprint Navigation, it takes a handset application to weave handset functionality into a complete solution.

And finally what does it mean that smartphoners in the UK rely upon their operator portals for web browsing?  Are the services offered by operators superior to those on the web?  Is it habit?   Or perhaps, the walled garden is simply more persistent in the UK than it is in the US.

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The day has arrived and lines have formed at Apple stores around the US.  If you’re in the US and have cable TV, CNBC is carrying live feeds from various cities awaiting the first sales of the iPhone.

There are Internet streaming sites also covering the launch and include live chat.  The NYC Soho Apple Store is covered live at iphonelaunch.tv.  The chat room is full, but they’ve added a second web site for chat.

Many of you already know that Scoble is broadcasting from the Palo Alto, CA Apple Store on ustream.tv.   There is also a live chat available.  Scoble’s feed has been experiencing audio difficulties, but the video is not bad.  Zoomr TV is providing the equipment and using Sprint’s EVDO network for transmission of the live stream.

The first sale of the iPhone occurs at 6pm local time, so NY’ers will be able to purchase 3 hours ahead of California line dwellers.

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Activity surrounding the much anticipated iPhone launch is coming from all quarters. According to Gizmodo, a line in front of the Apple Store in New York City has already begun. So, what’s the word on iPhone from around the web?

Pictures of the first two guys in line at the NYC Apple Store from Gizmodo.

Gizmodo appears on The Daily Show tomorrow night to explain the iPhone.

The Apple Insider reports that the faithful will be joined on their iPhone sleepover by Apple employees.

The Insider also describes details on how the launch will occur at Apple Stores.

Come Friday morning, all Apple retail stores will open around 10:00 a.m. local time for a 4-hour stint. They’ll then shutter for the same amount of time while prepping for the iPhone premiere, reopening at 6:00 p.m. local time with the gadgets for sale.

“We’ll open the doors again at 6:00 p.m., when you can be one of the first to see, try, and buy the iPhone,” Apple said in a message posted on its retail website. “Be sure to arrive early — iPhone is available on a first-come, first-served basis.”

Engadget reveals the security plan for iPhone deliveries.

FedEx drivers to deliver the goods in teams (one must carry the boxes, the other wields a big stick) for the 6pm store opening.

From BarCamp the first iPhone Dev Camp on July 6 and 7.

What other announcements of note have you heard?

x-posted at mm2

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