HELSINKI (Reuters) - A new Finnish company formed by former employees from Nokia and discarded technology used by mobile phone maker, plans to launch its first smartphone later this year, thus entering a market already saturated.
The 'startup', Jolla, Meegan will use the software, developed by Nokia and Intel between 2010 and 2011, for their products.
Based on the Linux operating system, Meegan has found use in netbooks and infotainment systems in cars, but so far only been installed on a smartphone model, the Nokia N9.
Finland's Nokia last year changed its own software platform, MeeGo and Symbian, Windows Phone from Microsoft, still unproven, a move that affected their sales and brought down the price of its shares. Yet to disclose sales figures N9.
"The team Jolla consists of managers and professionals of the organization, Nokia Meego, along with some of the improvements Meego minds working in the communities," said the new company in a statement.
Jolla said he would focus on the design, development and sales of new smartphones based on software Meego and submit its first model later this year, along with private international investors and partners.
Analysts said the new company would have trouble getting a smartphone market highly competitive, which is dominated by Google and Apple.
"Art is not to create a cool phone, the challenge is to create a sustainable business. And when you have everything in place, is when it takes the product to market," said John Strand, founder of the Danish telecoms consultancy Strand Consult.
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