Once upon a time, Nokia was the world’s leading mobile phone manufacturer. What happened to this legend that you could almost certainly find in everyone’s hands? How did Nokia, once one of the first brands to come to mind when it came to mobile phones, suddenly fall from the top spot in the mobile phone industry?
Nokia brought many innovations and technologies to the mobile phone industry. In fact, the company not only introduced innovation and technology but also brought Snake, which we still download and play on our smartphones today, into our daily lives. The Nokia 3310 model has managed to become one of the most unforgettable models for many people.
Throughout the 1990s, Nokia was a forward-thinking company that not only focused on the present but also anticipated the future. While producing its products, Nokia made significant investments in research and development (R&D) and marketing to ensure that its future products would appeal to the masses. This strategy provided Nokia with a significant advantage over competitors like Motorola, Samsung, and Ericsson, allowing the company to maintain its leadership position.
By 2007, Nokia’s market share had reached 49.4%, enabling it to dominate the mobile phone industry. Thanks to its R&D efforts and marketing investments, Nokia also managed to hold the title of the best-selling mobile phone manufacturer between 1998 and 2008.
Every company may have to deal with various challenges. Even if you’ve pioneered some of the best-selling mobile phones globally or have become the world’s leading mobile phone manufacturer, you may still face sudden challenges. And that’s exactly what happened to Nokia. There were three main problems that accelerated Nokia’s downfall. They were:
Undoubtedly, the biggest blow to the company came with the decision to recall 46 million cell phones. Moreover, this decision coincided with the highly anticipated unveiling of the iPhone, which further intensified the blow. As a result, the company’s profits experienced a significant decline, leading to layoffs the following year. However, all of these events were just the beginning of the company’s troubles.
Another mistake of Nokia was not seeing Apple and its smartphone, the iPhone, as a serious threat. While Apple emphasized the importance of software, Nokia failed to recognize the significance and potential of software. The company’s focus was on hardware, and it relied on consumer loyalty. According to widespread opinion, the company was also reluctant to adapt to the new era of smartphones and software. When all of these factors combined, the decline became inevitable.
As Nokia began to feel the presence of Apple and Samsung in the mobile phone industry, it tried to catch up with its competitors by releasing a series of phones. However, it was too late; the era of Android and iOS had begun, and the concept of smartphones had started to become more prevalent in our lives.
By the time 2010 arrived, Nokia was lagging behind its competitors. In 2013, software giant Microsoft acquired Nokia for $7.2 billion. Microsoft launched a series of smartphones with the Windows Phone operating system in collaboration with Nokia. However, these phones failed to catch up with Apple and Samsung once again.
