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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 Environment 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 takes on Apple in online software "arms race" Tue Mar 10, 2009 3:54am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Tarmo Virki, European technology correspondent HELSINKI (Reuters) - Nokia is betting a wider and more tailored offering of media and software for its phones will prove attractive when its Ovi online store opens in May and goes head-to-head with Apple Inc's App Store. The Apple store has proved the market for software supermarkets in the mobile world, with more than 500 million applications downloaded in only half a year. Nokia's market is potentially bigger -- it says the Ovi store will reach some 50 million consumers when it opens, while Apple has so far sold less than 20 million iPhones. But this does not in itself guarantee Nokia's success. While hundreds of millions of people use its phones every day, Nokia has yet to match Apple's success in getting people to pay for software downloads, despite its smaller rival getting a later start. Nokia has also lagged Apple in introducing popular touch-screen phones. Nokia says it will give 70 percent of all download revenue to developers, just like Apple, if consumers pay by credit card. But developers will earn less per transaction if consumers opt to pay through their operators, an option that will initially be available in nine countries. "Because of geographic coverage, credit cards will probably remain the main payment method," said Marco Argenti, vice president of media at Nokia. "Its going to be the default payment system across the world. (But) in nine countries ... developers can activate operator payments." Thus far, in cases where consumers can choose between paying via their operator or using a credit card, more than 80 percent use operator billing, Nokia's own data from the usage of its N-gage gaming service shows. ARMS RACE The size of the market shows it's important for Nokia to get its online store right. Research firm Strategy Analytics has forecast the value of the mobile content market -- including downloadable games, ringtones, wallpapers, video, mobile TV, text alerts and mobile web browsing -- to grow 18 percent to $67 billion this year. But competition is growing and Microsoft, Orange and others have also announced new online stores. "These companies are really entering the arms race," said Ford Davidson, chief executive of Seattle-based Dashwire, which makes software for linking cellphone content to the Web. "Nokia is the dark horse in this race. They have an unparalleled distribution channel," Davidson said. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Inventor says Google settles patent claim also on reuters China says U.S. naval ship broke the law AIG investor Broad abandons hope of recovery Climate change accelerates water hunt in U.S. West More Technology News Report slams "crude" effort to fight Web militants India's own Google Earth causes security worries YouTube to block music videos for UK users "American Idol" heads to iPhone Microsoft's new system easier for browser switch More Technology News... 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