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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared U.S. successfully tests airborne laser on missile 3:15am EST Euro slides on persistent Greek woes | Video 9:00am EST Factbox: Fashion world in shock over Alexander McQueen death 11 Feb 2010 U.S. dismisses Iranian uranium enrichment claims 11 Feb 2010 U.S. successfully tests airborne laser on missile 6:52am EST U.S. successfully tests airborne laser on missile 3:15am EST U.S. successfully tests airborne laser on missile 6:52am EST PersonalFinance: The love and money connection 10 Feb 2010 Yahoo executives address "misconception" about search 11 Feb 2010 Critics question Vancouver's green credentials 11 Feb 2010 Google, Apple pile pressure on phone world Tarmo Virki and Georgina Prodhan Fri Feb 12, 2010 8:11am EST Factboxes Factbox: Top smartphone makers: latest trends and outlook 5:38am EST Factbox: Mobile software market increasingly crowded 5:38am EST An advertisement for the Apple iPhone is shown at a retail store of an Orange mobile phone network provider in Bordeaux, southwestern France, October 23, 2009. Credit: Reuters/Regis Duvignau HELSINKI/LONDON (Reuters) - At next week's mobile trade show in Barcelona you can find a program that measures how high you can throw a Nokia smartphone, an apt metaphor for Nokia's efforts to raise its game. Technology | Media But gravity might not favor the world's biggest maker of cellphones, as the focus of the $169 billion industry shifts to software and services, the "mindshare" that is lifting nimble competitors such as iPhone maker Apple and Google. For the first time, Nokia has opted out of the Mobile World Congress this year, another trend set by Apple, which eschews industry get-togethers in favor of its own, carefully choreographed events. Nokia will host some meetings nearby, but is reported not to be planning any new phone launches. At the same time the fair will be flooded with new phones using Google's Android platform. The other big names in the industry, Microsoft, Samsung and Sony Ericsson, have also been struggling with the pace set by Apple and Google, ever since the first iPhone took the world by storm in mid-2007. Nokia is seen among the best positioned to cope with the onslaught thanks to its own operating system, investments in services, and huge scale benefits in phone production, but Apple already makes more profit from phones than Nokia. Trying to replicate Apple's success in selling mobile software through its App Store, Nokia, Microsoft and others have opened their own online stores, but with little success. "Everybody is struggling. There is a lot of hype, but there is not a lot of dollars," said Dana Porter, vice president for strategy at phone-billing and customer-management software maker Amdocs. ANDROID INVASION Google's high-profile presence at the show with a keynote speech from Chief Executive Eric Schmidt will remind the industry just how quickly relationships and revenue sources that once seemed assured can change. The Web search giant last month started to sell the Nexus One, a touchscreen smartphone it sells directly to consumers, bypassing the operators who normally control the sale of phones in Europe and the U.S. Having seen the destruction Google has wrought in the media sphere to previously cozy relationships between publishers, advertisers and readers, the telecoms industry is nervous. Google also said this week it planned to build a super-fast Internet network for up to half a million people in the U.S., a project that could loosen telecoms companies grip on Web access. As well as potentially upsetting operators, Google's open Android platform also presents a threat to makers of rival smartphone platforms, including Nokia and Microsoft. "Android is a very large boulder rolling toward the mobile market," said Fjord's Lindholm. "I think what we will see is an Android invasion." The Nexus One, Google's first own-brand device, is also the first concrete sign it is paying serious attention to hardware. Although Google has built considerable loyalty and a huge advertising business around its search engine and gmail services, these are free to consumers. Apple, on the other hand, has persuaded more than 100 million consumers to hand over hundreds of dollars apiece for its iPods and iPhones. MORE TRAFFIC Top hardware makers plan to roll out increasingly cheap smartphones in 2010 to battle the new rivals in the mass market. "It seems that volume champions like Nokia and Samsung are opting to get down and dirty in 2010; we'll likely see eye-poppingly cheap touch-screen devices this year," said MKM Partners analyst Tero Kuittinen. With average smartphone prices dropping sharply, the phones will reach a much wider audience, causing data traffic on operators' networks to soar, especially as video sharing via mobile becomes more commonplace. "This is a big challenge as it uses a huge amount of data bandwidth," said Martin Garner, analyst at CCS Insight. Top telecom equipment vendors -- Ericsson, Nokia Siemens, Alcatel-Lucent and others -- will all demonstrate and sell their next-generation LTE equipment at the show, trying to convince operators to choose them to upgrade their networks and handle the data crush. But analysts say operators' sales in mature markets are not growing fast enough to justify major investment. (Editing by Will Waterman) Technology Media Add a Comment More from Reuters Wall Street tumbles as China ups bank reserves NEW YORK (Reuters) - Stocks tumbled on Friday after a surprise move by China to increase bank reserve requirements raised worries about the impact of monetary tightening on global growth, weighing on commodity prices and resource shares. China surprises with further rise in banks' reserves Republican Gregg sees scope on financial regulation Greek slump threatens debt plan, EU aid elusive | Video Consumer sentiment slips in early February Volcker: Choice is prop trading or bank charter » More Top News Bernd Debusmann: Europe, the superpower? True or false: Europe has the world's biggest economy, the most Fortune 500 companies, and attracts the most U.S. investment? Commentary Euro zone recovery takes hit EU hurt confidence with vague pledge Germany's Merkel cool on Greek aid Global Markets Analysis: Wanted: Exit instruction manual The Fed has the tools to withdraw the $1 trillion it has pumped into the financial system, but do they know how to use them? Full Article Bernanke lays out vision for exit Bernanke's House testimony text Economy © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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