Nokia Leftovers Phone Application To Preserve Cash: Sources

Finnish mobile phone maker Nokia has cast off the application it was developing to compete with Google mass-market Operating system mobile phones, three resources with direct knowledge of the company's plans said, in its newest move to reduce expenses.

Loss-making Nokia was hoping the Linux-based application foundation, code-named Meltemi, would replace its aging Sequence 40 application in more innovative function mobile phones - mid-range mobile phones that sit between basic models and sophisticated mobile phones.

Scrapping the foundation means Nokia will risk losing its strong position in the mass-market, where mobile phones are priced at $100-$200. Nokia controlled more than 20 % of this industry in the first one fourth, according to research firm IDC.

Nokia's Chief Executive Stephen Elop flagged Meltemi in a published video in mid-2011, but Nokia has never formally confirmed Meltemi existed. It dropped to comment.

In June, Nokia said it would cut 10,000 jobs - one in five staff in its mobile mobile phone business - as it combat to pull the company out of the red. Talks over job cuts are scheduled to end this week in Finland.

"With the pressure to make extreme cost-savings it is little surprise that it has been cut," said Canalys specialist Pete Cunningham. Releasing and maintaining a application foundation expenses millions of dollars.

One of the resources, who works at a provider, said the original plan was for the first function mobile phones using Meltemi should to be available on the industry by now.

Smartphones such as Apple's iPhone which offer a foundation for third-party application developers, is where the sector's most powerful growth is. But simpler function mobile phones, with restricted support for third-party application, still account for most mobile phones marketed.

Nokia's Sequence 40 foundation is in around 2 million mobile phones, creating it the most popular application in the marketplace. But it does not have the smartphone-like experience, such as lots of innovative applications that Meltemi could have offered.

Google's Operating system foundation has stormed the mobile mobile mobile phone industry in its first few years. Last one fourth it was used in approximately 60 % of all mobile phones marketed.

Nokia last year thrown out its own mobile mobile mobile phone application platforms in give preference to of Windows Windows Phone, which has so far had a restricted impact, in part due to the price of mobile phones using it.

"The important aspect for Nokia is driving Windows Phones expenses low enough to link the gap with the function mobile phones Asha variety -- that should happen in 2013," said Cunningham.

IDC specialist Francisco Jeronimo said Nokia has done well by adding new features like full-touch screens and computer keyboard to its newest Asha variety of Sequence 40 mobile phones.
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