The Wall Street Journal is reporting that Nokia has unexpectedly, and at the last minute, cancelled the US launch of the X7 smartphone. The device was apparently slated for a big announcement with AT&T as the exclusive partner at Mobile World Congress in February. This isn’t just another phone for Nokia, the X7 was to be the first US exclusive launch of a device since former Microsoft executive Stephen Elop took the reins of the faltering company. 

Sources said that Nokia decided to pull the device for fear that it wouldn’t receive marketing and subsidy dollars from AT&T. This leaves Nokia with the N8 as it’s only modern flagship phone, and there is no carrier support for the device in the US, despite it having a versatile penta-band UMTS radio. Clearly, the US market is a sore spot for Nokia.

It could be that Nokia is just biding its time until their next gen software platform, MeeGo, is ready for use on phones. Symbian is seen as clunky and old-fashioned by many in the industry. Even if Nokia has a plan, the US market isn’t going to wait forever. iOS and Android are already claiming users as their own in droves.