Nokia Goes In for Operations Overhaul, Reel in Navteq
Wednesday, June 22, 2021 12:41 PM

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Ailing Finnish cellphone maker Nokia Corp. (NYSE: NOK) said Wednesday that it would combine its Navteq mapping unit with its location-based services business, as the struggling mobile-phone maker continues its strategy overhaul as it tries to gain profitability and compete more effectively against rivals such as Apple Inc .

In the mobile-device manufacturer market, the navigation and location-based services plays an important part of the increasingly competitive battleground as they look to tap the data provided by their users, and as applications take over from hardware as key selling points.

According to Pyramid Research the location-based service is expected to grow to over $6.2 billion by 2015.

"Focusing on location and commerce is a key natural step in Nokia's services journey," Chief Executive Stephen Elop said in a statement.

Describing the new location and commerce unit as "crucial in Nokia's transformation strategy," Mr. Elop said the company aims to broaden its content and services offerings by making them available to partners and customers on a wide variety of devices and operating systems.

The new unit will be led by Michael Halbherr, who has been with Nokia since 2006, and most recently leading the product side of the company's services business from Berlin. From July 1, Mr. Halbherr will report directly to Mr. Elop. Larry Kaplan, Navteq's current chief executive, will remain at Navteq until the end of the year.

Nokia said that the new unit will also provide a platform for device makers, application developers, merchants and advertisers.

Shares of Nokia added 0.66 percent to $6.10 on Wednesday.