In this blog, I will talk about how Nokia, after rising to the top in the mobile industry, eventually failed. It's a very interesting business case study which teaches the corporate world valuable lessons.

From being synonymous with the word mobile phone to reaching a point where its sales dropped so low that it had to sell its mobile phone division — the fall of Nokia is worth analyzing.

Nokia’s Rise to the Top

• Founded: 1865 in Finland

• Industries: Communication, IT, and Consumer Electronics

• Entered handset business by acquiring Mobira.

• 1991: First GSM call made using a Nokia phone.

• 1997–1998: Captured 25% market share globally.

• Early 2000s: Dominated Indian market with Nokia 1100 & 1110 (70% share).

• 2008: Sold nearly half a billion handsets with 49.4% market share (an unmatched record even today).

Nokia was booming with increasing global presence and manufacturing plants worldwide.

The Turning Point

In 2007, Apple launched the first iPhone (full-touch screen).
In 2008, Google launched the first Android phone.

This marked the beginning of the legendary battle: Apple’s iOS vs Google’s Android.

Nokia responded with XpressMusic touch phones, which were commercially successful but heavily criticized for poor software quality.

Where Did Nokia Go Wrong?

1. Overconfidence

• Dismissed iPhone as “inferior” since it was expensive and worked on 2G, while Nokia phones supported 3G.

• Refused to adopt Android, sticking to Symbian OS instead.

• A Nokia executive famously said: “Using Android is like pissing in your pants for warmth in summer.”

2. Internal Conflicts & Delayed Releases

• R&D divided into two teams: one worked on improving Symbian, another on a new OS (MeeGo).

• Infighting delayed launches.

• By the time Nokia launched N97 (2010), Apple and Android had already gained momentum.

3. Frequent Management Changes

• Two CEOs changed in just 5 years.

• Constant restructuring led to employee dissatisfaction and loss of key talent.

4. Failed Microsoft Partnership

• In 2011, Nokia partnered with Microsoft to launch Windows Phones.

• Windows lacked apps compared to iOS and Android.

• Consumers rejected it, and sales continued to plummet.

What’s Up With Nokia Now?

• Nokia still exists, but is far from its glory days.

• 2016: Microsoft sold Nokia’s mobile division to HMD Global (formed by ex-Nokia executives).

• 2017: HMD relaunched Nokia phones with Android OS.

• Nokia continues to release smartphones, but is still catching up with Apple, Samsung, and Chinese brands.

Lessons from Nokia’s Fall

• Never underestimate competitors.

• Adapt quickly to market shifts.

• Internal unity and leadership stability matter.

• Partnerships need to align with market demand.

Tell Us What You Think

What do you think was Nokia’s biggest mistake — refusing Android, poor leadership, or Microsoft partnership?
Share your thoughts in the comments below 👇

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