Nokia maps unit needs direction (RCR Mobile Minute)

Mobile Minute:
Microsoft is not the only company preparing to say goodbye to a key leader this week. Its longtime mobile partner Nokia is losing the head of its HERE maps unit. Michael Halbherr, CEO of HERE, says he is planning to return to “entrepreneurial activities.”
Bloomberg reports that another possible reason for his departure may be a disagreement with Nokia’s new CEO Rajeev Suri about the right direction for HERE. Right now Nokia is trying to compete with Google Maps in the consumer market, but working with automakers and other corporate clients may be a more promising path. HERE already has an estimated 80% of the market for onboard navigation systems in cars, and the unit counts Toyota and Volkswagen as customers.
Meanwhile the U.S. Transportation Department is on the road to mandating connectivity for crash prevention, and a number of leading automakers are busy developing connected cars.
Yahoo Maps is another important corporate client for HERE. Yahoo and Nokia have recently launched indoor venue maps, which could eventually generate revenue from merchants who want to combine real-time offers with mapping.
Nokia’s HERE unit reported revenue of $300 million last year, up 10% from the previous year.
Nokia’s device unit is of course part of Microsoft now. The Nokia Lumia has dominated the fledgling Windows phone market, but now the Lumia has a new high-end competitor. For more on that, see today’s video below.