Nokia Shutters Chicago, New York Stores Amid iPhone Competition

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Just days after turning out the lights on its London flagship store, cell phone giant Nokia has shuttered its New York and Chicago stores. The move is described as a “realignment” of marketing and only the latest indication Apple’s retail success isn’t easily replicated.

Nokia discovered consumers used its shops for browsing, but went elsewhere to make purchases. “They would use the stores to test out devices and then go home and buy the device they wanted online through Amazon, Newegg, Dell or even the Nokia USA store,” according to Nokia Experts.

Both stores opened in 2006 with a goal to “educate consumers on the Nokia brand.”

The latest shut-downs follow Nokia’s Regent Street closure in London earlier this week. The store closings are only the most recent sign the iPhone is making greater inroads on Nokia’s territory. Apple shipped 7.04 million iPhones during the September quarter, making it the third-largest smartphone maker behind Nokia and RIM, analysts announced in November. Another blow to Nokia was the news Apple had passed the Finnish giant in profitability.

Apple, by comparison, has been opening retail locations at a record pace, including its New York office which some have described as a “temple” of glass and glitz.

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About the author

Ed SutherlandEd Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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