The company couldn't get carrier billing in the United States but thinks the social networking and location-based aspects of its Ovi Store will help it gain widespread adoption.
U.S. customers wanting to use Nokia's upcoming over-the-air application store will need to have a credit card, as the cell phone maker said it won't have a carrier billing option.
The move could be a blow for Nokia because carrier billing would have led to a seamless way to quickly purchase apps. While users will likely only have to fill out credit card information once, every barrier to purchase could lead to fewer sales. The cell phone manufacturer hopes its Ovi Store can help it gain a wider audience in the United States, where it trails Apple, Research In Motion, and Palm in the smartphone market.
Mobile apps have been around for years from places like Handango, but there has been increased interest because of the success of Apple's App Store for the iPhone and iPod Touch. One underrated aspect of the App Store is that its billing infrastructure is tied to iTunes, and many iPhone and iPod Touch users already had billable accounts there.
As competing application stores arise, it's unclear how big a role the payment system will play. Microsoft has yet to officially announce what payment system it will use for its Windows Marketplace for Mobile, but the company said it's mulling carrier billing.
Google went in-house for its store, as Android Market users have Google Checkout for payment. Research In Motion chose PayPal for payments for its recently launched App World for BlackBerry smartphones. The companies haven't released download statistics for paid apps yet, so it's unknown if these third-party payment systems have been a help or a hindrance.
Nokia users in eight other countries will be able to bill their carriers for apps when the Ovi Store launches in May. The company wants to differentiate its app store offering by integrating social networking and location-based information. For example, if a user gets off a plane in New York, the Ovi Store will utilize that geographic data to recommend location-relevant apps like local restaurant review programs.
Learn more about all the latest products and technologies for the smartphone and mobile application market at TechWeb's Interop Las Vegas, May 17-21. Join us (registration required).
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Digital Transformation Myths & TruthsTransformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.