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On Monday Nokia unveiled the Lumia 900, its latest attempt to take on the iPhone and Android smartphones. The Windows Phonerunning device has all the makings of a popular smartphone -- sleek hardware design including a large 4.3-inch screen, a major carrier partner in AT&T and super-fast network capabilities known as LTE. But that doesn't mean it's a slam dunk for Nokia (NOK). The market is already flooded with devices that do all of the above. And despite Nokia and Microsoft's (MSFT) best efforts, both companies still have an insignificant piece of the U.S. smartphone pie, which belongs to Google (GOOG) and Apple (AAPL). To take on the competition, the duo will have to prove that their partnership can result in a truly different -- and better -- mobile experience for consumers. that's easier said than done.

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"Differentiation matters," Stephen Elop, CEO of Nokia, told Fortune in an interview following the company's announcement on Monday. "Many of those other devices -- if you squint your eyes a little bit -- are blurring over because they're all the same experience. They all have the same static collection of applications that don't do much when you just look at it." Nokia chose to partner with Microsoft because it didn't want to become just another Android phone manufacturer. But while the Lumia 900 is a good-looking piece of hardware and Microsoft's "tile-centric" user interface has gotten good reviews, it's hard to see how that alone can be enough of a differentiator for Microsoft and Nokia. Even exclusive application partnerships with brands like ESPN and Sesame Street Workshop are unlikely to help give the Lumia 900 an edge, because many developers still feel there's no compelling reason to create apps for Nokia's Windows phone devices. At least not yet. At the company's press conference on Monday, Elop called the Lumia 900 a "beachhead" in the war of ecosystems. It's clear Nokia realizes it's no longer about coming out with one "iPhone killer" -- it's about coming out with a killer ecosystem that encompasses hardware, applications, a dedicated developer base and more. It's also clear that Nokia and Microsoft realize that they will have to fight with all their might to become a viable "third platform." Microsoft has already said it will give developers a slightly bigger cut of app revenue than Google and Apple do. And since February, Nokia

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To be sure, there is room for a third ecosystem, especially with the weakening of Research in Motion's (RIMM) hold on the enterprise. Nokia devices could take advantage of Microsoft's success in the office to try and appeal to IT departments as an alternative to both BlackBerries and the "bring your own device" trend. Lumia "The Windows Phone environment on Lumia devices has many of the capabilities required in a business setting," Elop told Fortune. "Microsoft provides much of the software that businesses use for office productivity like Microsoft Office." But even Elop admitted there was still plenty of work for Nokia to do as it tries to crack the U.S. market yet again. The Lumia 900 will be out "in the coming months," although it's still not clear exactly when and (for how much) it will sell, let alone whether it can help Nokia in its battle against iOS and Android. windows Phone Lumia

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Nokia moves device assemby unit to Asia for efficient smartphone production
Nokia has announced its plans to make changes in its factories in Komarom (Hungary); Reynosa (Mexico) and Salo (Finland). The measures follow a review of smartphone manufacturing operations that Nokia announced last September and aim to increase the company s competitiveness in the diverse global mobile device market. The above three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas while device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based.

With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs, said Niklas Savander, Nokia executive VP for markets. Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive. We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition, said Savander. The above statement is an indication that the move of the device assembly unit to Asia, where the relevant skilled labour is more readily available and cheap, would result in the loss of a substantial number of jobs for Nokia employees. As a consequence of the plans, the number of steps in manufacturing and the amount of work carried out at the sites in Komarom, Reynosa and Salo are expected to decrease substantially. The changes are anticipated to impact approximately 4,000 employees in total, leaving, reads the Nokia media release issued today. Personnel reductions are planned to be phased through the end of 2012, while Nokia will offer a comprehensive locally-tailored support program, including financial support and assistance with local re-employment.

Nokia to axe 4,000 employees, Hungarian headcount to be cut to less than half
Finland s Nokia has announced on Wednesday that it will lay off around 4,000 employees from its factories in Komrom, Hungary, Reynosa, Mexico and Salo, Finland. The measures follow a review of smartphone manufacturing operations that Nokia announced last September and "aim to increase the company's competitiveness in the diverse global mobile device market." Device assembly is expected to be transferred to Nokia factories in Asia. These three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas. Device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based," the mobile communication equipment producer said in a statement today. "With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs," said Niklas Savander, Nokia executive vice president, Markets. Shifting device assembly to Asia is targeted at improving our time to market," he added. By working more closely with its suppliers, Nokia believes that it will be able to introduce innovations into the market more quickly and ultimately be

more competitive. "We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition." As a consequence of the plans, the number of steps in manufacturing and the amount of work carried out at the sites in Komrom, Reynosa and Salo are expected to decrease substantially. The changes are anticipated to impact approximately 4,000 employees in total. The Komrom plant has a 4,400-strong headcount, 2,300 of which will be let go by the end of 2012, the company told Hungary's state-run newswire MTI. Personnel reductions are planned to be phased through the end of 2012. Nokia will offer a comprehensive locally-tailored support program, including financial support and assistance with local re-employment. Nokia announced a number of massive layoffs over the past few months. In April 2011 it said it would let 7,000 employees go and in September it decided on a 3,500-strong headcount slash. It seems the situation has changed a lot over the past year. The communications director of the Hungarian Nokia unit said a year ago no layoff was threatening the plant because the parent company s new strategy would not affect production there. Nokia intends to strengthen its competitiveness on the smartphone market via its cost-cutting measures, as it slipped back in the cut-throat race last year. The Finnish mobile company was by far the biggest smartphone producer in the world last year, but in early 2011 it decided to abandon the mobile operating system that comes on its phones, Symbian OS, and cede control of the software experience to Microsoft (Windows Phone). This move threw the company back in the tough competition. By Q4 its market share slumped to 12%.

Nokia s Hungarian unit, Nokia Komrom Kft. posted revenues of HUF 1017 billion or 3.6% of Hungary s GDP in 2010 in 2010, according to Opten data. In 2009 it booked HUF 1,075 bn revenues and an even heftier HUF 1,292 bn before the global crisis in 2008. In 2010, Nokia was the third-largest revenue maker in the country after MOL and Audi. In his annual state of the nation speech, Prime Minister Viktor Orbn highlighted Nokia as a positive example. Not only should those companies come to Hungary who squeeze out local entrepreneurs from the market and then take their profits out of the country, he said. The PM noted he definitely counts on companies as Audi, Mercedes, Opel, Bosch and Nokia that create stable jobs for Hungarians. Therefore he believes lowering the corporate tax to 10% from 19% was a useful decision.

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