• The New York Times, Monday, December 10, 2007 11:45 AM

Although it is the largest handset maker in the world--with 39% of the global market--Nokia has languished in U.S., hurt by its refusal to adapt its strategy to the idiosyncrasies of the American market. Nokia acknowledges criticism that it has pushed its own technology and design.

"We felt we could teach the U.S. market how we do business elsewhere, and frankly, that failed," says CEO Olli-Pekka Kallasvuo. As it sets out to regain its footing in the U.S., Apple and Google are going after Nokia's franchise. But in doing so, they are shaking up the wireless industry in a way that may open up the one market that has flummoxed Nokia.

The cell phone's growing role as the indispensable device in a wireless, Web-connected world ought to be a boon for Nokia. It already sells half of the world's so-called smart phones. It is plunging into an array of new businesses, like music downloading and navigation. The goal is to pack its phones with multimedia services. Already, its ubiquitous camera phones make it the world's top seller of digital cameras.

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