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Nokia Creates Unit For Internet Services

Nokia yesterday carved out a new unit focused on growth opportunities around music downloading, Internet browsing, mapping and other services. Under the reorganization--which takes effect Jan. 1--another unit will oversee mobile devices, and a third will be responsible for supply chains and sales and marketing.

The changes underscore the pressure on cell phone companies to find new businesses as the industry matures. The moves also highlight a broader shift where software is becoming as important--or more important--than hardware, says Ben Wood, an analyst at consulting company CCS Insight.

By combining the various device businesses, Nokia hopes to make its efforts to improve its range of handsets more efficient and speed up the time to market for new products. Different phone divisions have been bumping up against each other. The mid-tier phones, for instance, have become sophisticated with features that are traditionally the realm of the highest end of the range.

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