Finnish mobile phone maker Nokia is to merge its independent Navteq mapping unit with its services business to tap into surging demand for location-based services more effectively.

Nokia chief executive Stephen Elop named Michael Halbherr, an outspoken executive who joined Nokia in 2006, to lead the new Location & Commerce business line.

Mr Elop has seen the company's stock price halving over last four months as investors doubt the likely success of his plan to switch to Microsoft's smartphone software.

On May 31st, Nokia warned on current-quarter sales and profits and abandoned hope of meeting key targets just weeks after setting them, raising questions over whether its new boss can deliver on the turnaround he promised.

Nokia has lost initiative in the smartphone market to Apple's iPhone and Google's Android devices, and at the lower end to more nimble Asian rivals.

Overall, it still makes more mobile phones than anyone else due to its strong position in basic cellphones and its wider distribution network in emerging countries.

Reuters