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Nokia Said to Cancel U.S. Debut of AT&T X7 Smartphone

Nokia Oyj, the world’s largest mobile-phone maker, has canceled the introduction of its X7 smartphone with AT&T Inc. in the U.S., according to a person familiar with the situation.

Nokia had planned to offer the touchscreen phone this year exclusively on AT&T’s network in the U.S., said the person, who couldn’t be identified because the decision isn’t public. AT&T is the country’s second-largest wireless operator, behind Verizon Wireless.

Stephen Elop, Nokia’s chief executive officer, is struggling to counter competition from Apple Inc., maker of the iPhone, and Google Inc., whose Android software is used in smartphones made by Motorola Mobility Holdings Inc. and Samsung Electronics Co. Elop, the first non-Finn to run the company, has yet to present his long-term plans for Nokia after almost four months on the job.

Last year, Nokia delayed shipments of its N8 smartphone by at least three months due to production delays. The touchscreen phone was meant to compete with the iPhone and Android devices.

Laurie Armstrong, a spokeswoman for Nokia, said the company doesn’t comment on plans with wireless carriers.

“We are working hard to regain leadership in the U.S. market and we are in active discussions with our operator partners on that strategy,” she said in an e-mail.

Fletcher Cook, a spokesman for Dallas-based AT&T, declined to comment in an e-mail.

The X7’s cancellation was previously reported by the PocketNow.com blog.

To contact the reporters on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net; Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net.

To contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net; Vidya Root at vroot@bloomberg.net.

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