Nokia is reported to have cancelled the exclusive launch of a new flagship smartphone with US operator AT&T, with claims that Nokia felt the device “wasn’t going to receive enough marketing and subsidies support from the operator.” According to the Wall Street Journal, the handset, called X7, was set for an introduction at next month’s GSMA Mobile World Congress, although this may still take place – but without AT&T as Nokia’s headline partner. The aborted launch may prove something of an embarrassment for Stephen Elop, Nokia’s recently installed CEO, who many believed would strengthen the vendor’s position in North America – he is a Canadian, and a former Microsoft executive. It was previously reported that Elop has taken on direct responsibility for the smartphone unit.

The news is primarily significant because of Nokia’s acknowledged, and ongoing, weakness in the US market, where its high-tier products are generally only made available unlocked through retailers, rather than sold with operator subsidy and marketing support. The launch of a high-spec device with a tier one operator would have been a significant fillip for both Nokia and Symbian OS, which are currently little more than also-rans in the country. AT&T’s website currently does not list any Symbian OS devices from Nokia, while T-Mobile USA offers one – the entry level 5230 Nuron. Nokia’s flagship N8 smartphone costs US$469 from Nokia’s webstore unlocked, compared with US$199 for an iPhone 4 when purchased with a service contract. Despite AT&T’s lack of evident support for Symbian OS, it was Nokia’s partner for a 2010 North America developer contest, intended to promote adoption of the platform in the region.