Nokia will pull its X7 smartphone launch at AT&T on concerns that it wouldn't get enough subsidy and marketing help to be a success.
According to the Wall Street Journal, Nokia was going to debut the X7 at the Mobile World Congress show next month. For Nokia, the X7 was going to be Nokia's entry into the U.S. market. As you know, Nokia is a massive phone maker that dominates most region of the globe, but is a no-show in the U.S.
The Journal story highlights the moving parts between Nokia and AT&T, but here's the kicker:
Nokia decided to pull the phone because it believed the X7 wasn't going to receive enough marketing and subsidies support from AT&T, said one person close to the company. Nokia still plans to launch the X7 in other markets, this person said.
The upshot to all of this is that AT&T is Android's new best friend. HTC, Motorola and Samsung all plan strong Android devices for AT&T's network. AT&T wasn't about to take a chance on Nokia being a hit in the U.S. when it has Android as its primary diversification tool. AT&T has lost the exclusive on the iPhone to Verizon. Now the marketing war will kick off and AT&T is betting Android can help its chances.
Add it up and Android crowded Nokia off the AT&T shelves before the X7 even hatched. You can get the N8 from Nokia unsubsidized, but that's a non-starter in the U.S. market. Nokia had no chance with AT&T since it is planning its own Android assault. Can Nokia CEO Stephen Elop solve for Android?