More reports on: Telecom
Nokia scraps development of new software platform Meltemi: report news
27 July 2012

Struggling Finnish cellphone maker Nokia has scrapped the development of its new operating Linux-based software platform, Reuters today reported, citing three sources with direct knowledge of the company's plans.

The Espoo, Finland-based company was reportedly working on a new Linux-based software platform called Meltemi to replace its aging Series 40 and was supposed to launch it early this year in order to revive its market in feature phones.

The company has never officially acknowledged that it is developing the Meltemi, and neither is it likely to announce that it has killed the new software that would have powered its range of new low-end and entry-level handsets.

Several analysts believe that Nokia might have abandoned developing the new OS late last year or early this year and opted to go with Microsoft's untested Windows Phone OS, which has yet to make an impact in the market.

Nokia, once the world's dominant mobile handset maker, whose market value has eroded by more than $88 billion since Apple introduced the iPhone in 2007,  last month announced sweeping changes, including eliminating 10,000 jobs in addition to the 7,000 job cuts already announced in April 2011, when it unveiled a 1-billion cost-cutting programme.

Nokia is facing fierce competition from Apple's iPhone, Samsung's Galaxy line of smartphones and other handset makers like HTC of Taiwan that use Google's Android operating software.

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Nokia scraps development of new software platform Meltemi: report