Olli-Pekka Kallasvuo

Nokia Corp. may be the world's top cell phone maker, but it's no longer a trendsetter, as a host of inventive and alluring technologies from North America is shifting the center of gravity in the cellular universe away from Europe.

Despite efforts to boost its position in the U.S., Nokia is struggling to compete with Cupertino, California-based Apple Inc. -- maker of the iPhone -- and Canadian smartphone maker Research in Motion, which makes the BlackBerry.

Options traders are betting Nokia Oyj will gain 14 percent by Feb. 19 as the world's biggest maker of handsets returns to profit and investors bet the company is about to introduce technology.

Speculation that Nokia will rise pushed the number of bullish options on the stock to almost double the level of bearish ones, the highest ratio in about a year, according to data compiled by Bloomberg.

Nokia Corp. said Wednesday it expects the global mobile phone market to grow by 10 percent in 2010, suggesting the industry is recovering from a global recession that has also hit handset sales.

However, the world's largest cell phone maker cautioned that its own market share volume, currently at some 38 percent, would be "flat" next year, but added that it expects the value of its market share to be up "slightly."

Nokia said it is targeting revenue of euro2 billion ($3 billion) in 2010, with operating margins of 12-14 percent.

Nokia joined the netbook crowd with the release Tuesday of its Booklet 3G mini-laptop. The new Windows 7 product is being offered with a data plan from AT&T, and will be in Best Buy stores next month.

The company "recognizes that the most powerful device is the one that doesn't have you running for the power plug or network point," said Nokia President and CEO Olli-Pekka Kallasvuo. In addition to 3G, the Booklet also has Wi-Fi, an HDMI port for high-definition video out, a front-facing camera, Bluetooth and a SD card reader.

'A Premium Product'

On Tuesday, Nokia introduced its Booklet 3G to U.S. consumers. Nokia has partnered with AT&T, Best Buy, and Microsoft to launch its first device that aims to breach the chasm between personal computer and mobile device.

The Booklet 3G runs on Microsoft Windows 7 and is powered by an Intel Atom processor. Nokia promises the device will deliver up to 12 hours of battery life so users can leave their power cable behind and still stay connected and productive.

Nokia has seemed determined recently to remind the world that it, not a certain Cupertino [Calif.] rival, is the world's dominant handset maker. In the space of four days, the Finnish company, which accounts for 37 percent of global mobile-phone sales, announced plans for a netbook computer, unveiled a new bargain-priced touchscreen handset, and a high-end "Internet Tablet." Nokia also rejiggered its top management, elevating an executive in charge of user friendliness to the executive board.

Nokia on Thursday reported its worst quarterly profit in more than a decade. Nevertheless, the cell-phone maker's shares rallied in the wake of optimism expressed by CEO Olli-Pekka Kallasvuo.

The Finnish company said its profit declined to 122 million euros (US$160.7 million), from 1.2 billion euros (US$1.6 billion) a year earlier. Sales fell 27 percent.

Mobile-phone giant Nokia plans to slash 700 more jobs worldwide in the next few months amid weakening demand for its products. The announcement Monday by Espoo, Finland-based Nokia comes just two months after the company first said it would shrink its handset unit and cut 1,000 jobs.

Last month, Nokia continued cost-cutting measures by starting its global Voluntary Resignation Package, which offered the first 1,000 employees who volunteered to leave severance packages. The company also encouraged employees to take holidays as time off instead of taking cash compensation.

The Finnish Parliament approved controversial legislation Wednesday that allows employers to track workers' e-mails.

Lawmakers approved the government proposal in a 96-56 vote. Forty-eight were absent or abstained.

The new law, which is subject to the president's approval, does not allow employers to read employees' e-mails. But it gives them the right to track workers' e-mails by retaining information about such messages, including the recipients, senders and the time when e-mails have been sent or received.

Nokia is exploring the possibilities of vying for a piece of the laptop market. The world's largest cell-phone manufacturer's CEO told a Finnish television audience that the company is "actively looking" at entering the laptop fray where Dell, Hewlett-Packard and Acer dominate.