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Nokia cancels AT&T launch of X7 phone

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Nokia has seen better days in the U.S. market. Days ago, we learned about the X7, which was being readied for release on AT&T sometime this year, but a new report by the Wall Street Journal claims that the device has been canceled by Nokia due to lack of support from AT&T. It will still launch, as planned, in other markets around the world.

Many times, carriers will heavily promote certain exclusive phones, but Nokia’s diminished state in the U.S. market may be to blame for AT&T’s reluctance to push the device or sell it at a low enough price. Without proper support by at least one carrier, the Finnish handset maker may have actually lost money on the device in the long run, due to lack of interest. Out of all U.S. carriers, AT&T has historically been the kindest to handset makers like Nokia and Sony Ericsson, who haven’t made headway with any other carrier.

The cancellation means that the N8 is Nokia’s only device being sold on the U.S. market, and even it has no carrier support. To purchase an N8, users must buy it on Nokia’s Website for about $470. Nokia has already lowered the price from $549 when it launched last September. If the N8 was sold by a carrier, it’s price would be subsidized and much more affordable ($200-$300) to U.S. phone buyers.

It is unknown how well the N8 is selling, but Nokia could use a hit device. MarketWatch reports that the company has a lot to prove in the next three weeks. It releases its fourth-quarter earnings next Thursday, which will include holiday sales, and the Mobile World Congress is coming up a few days after that. Bad news and a bad showing won’t bode well for Nokia.