Struggling Nokia revamps ops, reels in Navteq

Reuters News
Posted: Jun 22, 2011 3:08 PM
Struggling Nokia revamps ops, reels in Navteq

HELSINKI (Reuters) - Finnish cellphone maker Nokia said on Wednesday it would merge its independent Navteq mapping unit with its services business to tap into surging demand for location-based services more effectively.

Nokia Chief Executive Stephen Elop named Michael Halbherr, an outspoken executive who joined Nokia in 2006, to lead the new Location & Commerce business line.

Elop has seen the company's stock price halving over last four months as investors doubt the likely success of his plan to switch to Microsoft Corp's smartphone software.

On May 31 Nokia warned on current-quarter sales and profits and abandoned hope of meeting key targets just weeks after setting them, raising questions over whether its new boss can deliver on the turnaround he promised.

Nokia has lost initiative in the smartphone market to Apple Inc's iPhone and Google Inc's Android devices, and at the lower end to more nimble Asian rivals.

Overall, it still makes more cellphones than anyone else due to its strong position in basic cellphones and its wider distribution network in emerging countries.

(Editing by David Holmes)