• Bloomberg, Thursday, February 25, 2010 10:38 AM

Nokia, which first put a Web browser on a phone in 1996 and emerged as the must-have brand after its 8110 model appeared in 1999's "The Matrix," has been battered by competitors of late -- particularly Apple's iPhone and its army of apps. But CEO Olli-Pekka Kallasvuo tells Diana ben-Aaron that he has a plan to put the Finnish-based company back in the game.

Touch-screen smartphones are just the first step in changing from a device manufacturer to an Internet leader that connects people through social networking and services tied to a user's location, he says. "We're now in a combination of several industries: mobility, Internet, PCs, media, content," Kallasvuo maintains. And he's not shy about making it known that customers are the No. 1 the priority.

"One of his favorite sayings is 'That's not enough,'" says Alberto Torres, who is in charge of design and testing for new phones and software. "The No. 1 priority is to improve the user experience."

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