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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 to tackle Apple with leaner services push Tue Apr 28, 2009 1:27pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Tarmo Virki, European technology correspondent MONACO (Reuters) - Nokia Oyj said on Tuesday it would combine its different Internet services tighter together as the world's top cellphone maker tackles Apple's hugely succesful App Store. To cope with slowing phone demand Nokia is building a new business from mobile Internet services -- like games or maps -- but is scaling back separate investment plans due to the slowdown, and focusing on merging the delivery of services. "We are moving into Ovi, into a platform strategy," Tero Ojanpera, head of the entertainment and communities operations at Nokia, told Reuters in an interview on the sidelines of the Nokia developer summit in Monaco. Ovi is Nokia's much-anticipated online store which is set to launch in May. Nokia, which made its first ever quarterly pretax loss in January-March, is cutting annual costs at its key handset unit alone by more than 700 million euros ($911 million) to counter plunging demand. Nokia said on Tuesday it would cut up to 360 jobs at its Internet services unit, while it would cut an additional 90 jobs elsewhere in the organization. The Apple store has proved the market for software supermarkets in the mobile world, with one billion applications downloaded in less than a year. "As much as iPhone and App Store is a success for Apple, it's a humiliating defeat for the rest of the mobile industry," said Bengt Nordstrom, chief executive of telecoms consultant Northstream. "Twenty years of efforts from operators and vendors to create mobile applications that customers like is overtaken in a heartbeat by someone that has never done it before," Nordstrom said. Many of the operators are now embracing different software stores aiming to generate more data traffic from its clients and to avoid customer turnover. "We are going to make it as easy as possibly for our customers to buy from whatever shop," said Steve Glagow, vice president for marketing operations at Orange. But not all operators -- Nokia said operator billing would not be available in the United States when its Ovi store opens, as it had said earlier. SCALE KEY VS APPLE, GOOGLE Nokia's market is potentially bigger than Apple's -- it says the Ovi store will reach some 50 million consumers when it opens in May, while Apple has so far sold some 20 million iPhones. "Nokia's timing is absolutely right," said Patrick Bossert, director of marketing strategies in Europe and Asia at telecoms services firm Convergys. "Like any publishing market, its about the economies of scale," Bossert said. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Nokia drops U.S. operator billing from Ovi launch Also On Reuters Full Coverage: A look back at Obama's first 100 days Commentary: What's the payment plan for credit crisis? Americans anxious, but not panicking over swine flu More Technology News Online gambling bill coming: Frank IBM, Brocade boost ties as Cisco rivalry heats up HP unveils ProBook laptop line Nokia drops U.S. operator billing from Ovi launch Cablevision rolls out super-fast Internet access More Technology News... More News UPDATE 3-Nokia to tackle Apple with leaner services push 1:22pm EDT Nokia cuts jobs, to take on Apple 8:39am EDT Editor's Choice Swine Flu: An in-depth look at the virus, with the latest stories, facts and videos. Full Coverage Most Popular on Reuters Articles Video New swine flu infections intensify travel fears | Video U.S. swine flu cases rise, more expected | Video U.S. swine flu caseload jumps to 64 WRAPUP 10-New swine flu infections intensify travel fears Ex-soldier bragged about Iraqi rape, deaths: lawyer Swine flu prompts California "state of emergency" | Video Citi and BofA may need more capital after stress tests Fear a high school reunion? 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