Here we go:

http://www.engadget.com/2009/12/09/n...s-are-closing/

Flagship stores in the US closing...

I wonder how this will be interpreted by others. I think they're (or should be) refocusing in a way that would honestly be meaningful to the US market other than expensive stores in markets that have yet to yield the effect that they need/want.

I won't see it as a negative... yet.

Not surprised at the NYC closing, the store had a terrible layout. However, the Nokia beancounters are working overtime. Looks like some serious cost cutting happening as most companies just use 5th ave as Marketing budget.

Hopefully Maemo is not affected if it doesn't meet whatever internal targets they've set (number of apps by X date, number of n900 sales, development cost overruns etc)

If they replace them with more, smaller stores like they used to have I'll feel they're on the right track.

Otherwise...

Abandon ship . What worries me is that the london store is closing as well. I guess the decline in sales has to hit home sooner or later. I for one am sad this is happening but also glad in a way. Maybe now they'll realize that consumers are king and if you don't deliver and innovate constantly you will go down the drain.

A sad day indeed. I do always enjoy going to the Nokia store in Chicago. Sadly I can understand the need for this. I do not know where the stores are located in New York or London but I know that where the store is in Chicago and the rent on that place alone must be insane. I doubt the store really even is profitable. =(

The store in Chicago couldn't possibly be profitable. The market for unsubsidized phones in the United States is so disgustingly low, and the rent has to be through the roof. Sadly, most people purchase phones through their carriers and pay more through their contract, and this trend isn't reversing any time soon.

Anyways, I just purchased my N900 this past weekend at the flagship store, and the employees there were extremely intelligent, kind, and helpful. I love going in there and just seeing the handsets on display. It's a wonderful store, and I'm very very sad to see it go. It's an interesting place; I wish it didn't have to close. Hopefully Nokia has something big up its sleeve.

The Nokia store in Shanghai was packed! They also push their Nokia phones at the Best Buy in Shanghai. I just visted there a few weeks ago. It was quite interesting. Not to mention I was asked by every sales person on the street if i wanted to buy an "Iphone - ie, pirated iphone". People simply don't trust the iphones in China. They assume they are fake and 9/10 prob are fake. If nokia pushed in the chinese market, i think they could do well. Obviously looking at one store doesn't mean anything, but it gives a half-sided view on an opportunity.

I suspect that these kind of flagship stores may not be the most wide reaching venues, especially for their price. That said, actually having a place to try out the device goes a long way toward selling many people on devices like this. Their impact in selling devices is probably greater than the money they take in because lots of people will make their decision to get the device based on in store experience but will buy online. That said, I'm not sure how effective these stores are. When I tried the n900 at the Chicago store, they had just sold the last one they had for sale. Having hands on time with the device was very good marketing for them though, since I'm always somewhat wary of things not living up to the marketing hype.

edit: Nokia *could* offset this if they were able to get a selection of their high-end, unlocked phones into every Best Buy and [insert electronics store here]. I don't see that as terribly likely, since I've yet to see an n97 or an n900 in the local ones. You can see a Moto Droid though...

I think the n900 will be sold in Best Buys considering they had an online listing for it a while back (though none were sold because I don't think they got any shipment). Probably later next year.