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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Nokia unveils its first Linux phone Thu Aug 27, 2009 9:33am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Tarmo Virki, European technology correspondent HELSINKI (Reuters) - The world's largest handset maker, Nokia unveiled on Thursday its first phone running on Linux software, aiming at improving its offering at the top end of the market. The focus of cell phone business has shifted to services and software following Apple and Google's entrances to the market in the last two years. Nokia also unveiled a new Solutions business unit, which aims to better tie together its phone operations and new mobile Internet services offering. The Finnish firm has been looking for business opportunities from offering services like music downloads or games to cell phone users as the handset market itself is maturing, but so far its offerings have gained limited traction. "As Nokia announces the software platform that will drive its future services aspirations it created a dedicated solutions unit -- the challenge will be to ensure that all these elements work in harmony in the face of fierce competition from Apple and Google," said Ben Wood, head of research at CCS Insight. Nokia has kept its overall market share stable, close to 40 percent, but it has lost share among more expensive models to the likes of Apple. High-end products are important for Nokia because the company has not only lost market share there but its average selling prices have declined faster than the industry average. Goldman Sachs expects Nokia's value share (a measure reflecting average prices as well as underlying market share) for phones costing more than $350 to decline to 13 percent this year from 33 percent just two years before. THE LINUX BET Analysts see Linux as a key for Nokia to gain back ground in the coming years. The Finnish firm has dabbled with Linux since 2005, using it in "Internet tablets" -- sleek phone-like devices used to access the Web that have failed to gain mass-market appeal in part due to their lack of a cellular radio. The new N900 model, with cellular connection, touch screen and slide-out keyboard, will retail for around 500 euros ($712), excluding subsidies and taxes. Nokia's workhorse Symbian operating system controls half of the smartphone market volume -- more than its rivals Apple, Research in Motion and Google put together. Nokia said Linux would work well in parallel with Symbian in its high-end product range. "This is in no way putting Symbian in jeopardy," Anssi Vanjoki, head of sales at Nokia, told Reuters. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Apple event expected soon, no tablet in sight also on reuters Blog: Conservative talk radio: little fondness for Kennedy Israel's Netanyahu given Holocaust plans in Berlin Video Video: Video ads come to print media More Technology News Microsoft cuts high-end Xbox price by 25 percent Facebook agrees to make Canada privacy changes Apple event expected soon, no tablet in sight Sharp eyes niche between netbooks, phones "Mona Lisa" comes to life in high-tech art exhibit More Technology News... 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