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Last updated: Friday, December 18, 2009

Nokia Oyj Chief Executive Officer Olli-Pekka Kallasvuo said this month he’s “really bullish” about the company’s “Comes With Music” package, a phone bundled with unlimited songs. Analysts say it leaves them cold. Services like Comes With Music from Nokia, the world’s largest mobile-phone maker, to take on Apple Inc.’s iPhone are too little too late, said Tero Kuittinen, an analyst at Greenwich, Connecticut-based MKM Partners. “The time to really push for a premium service to compete with Apple was two to four years ago,” said Kuittinen, who has a “sell” rating on Nokia. “I give it a year before they close it.” The offering is part of Kallasvuo’s push into mobile services, which is aimed at stemming Nokia’s market-share declines. With dozens of ways to stream, rip or pirate tracks, the service faces consumers reluctant to pay for music access. Other hurdles include Apple’s stronghold on audiophiles with its pay-per-song model, the popularity of streaming services such as Spotify and carriers pushing their own offerings. Analysts view the service, unveiled about 14 months ago and touted as a strong offering by Kallasvuo at the investor meeting Dec. 2, as a test of Nokia’s ability to respond to consumer demand. Nokia’s share of the smart-phone market, the industry’s fastest-growing segment, fell to 35 percent in the third quarter from 41 percent, while Apple’s iPhone gained. Nokia has tumbled 86 percent on the Helsinki stock market since it peaked at 64.88 euros [$95.06] in June 2000. Crowded Market Sold in 15 countries, Nokia’s Comes With Music has clocked more than 10 million downloads in both Mexico and Brazil, two of its most successful markets. Spokeswoman Arja Suominen declined to provide overall numbers. Apple had 100 million downloads after iTunes had been open for about the same time, and has sold more than 8.5 billion tracks since starting in…

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Nokia’s Music Plan: Too Little, Too Late?

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