Nokia and Apple saw the world differently. Nokia’s goal was to create the best speaking devices, whereas Apple’s goal was to reinvent the phone through the revolutionary touch interface.
By that time Nokia was one of the biggest company and Apple was at its edge. Apple needed a break-through product since that was its last chance to stay in the game and in order to do that they had to change the game. Nokia, on the other hand, had everything.
It was an amazing manufacturing company focused on the product and features and its quality as well as prices and features of their mobile phones were unbeatable. However, they didn’t focus on consumers’ needs, felt too confident and stick to their Symbian operating system instead of trying to improve, push forward. In 2002 Nokia produced a similar device to the iPhone but there wasn’t much about the product other than the fact that it had a touchscreen, allowed users to browse the web, find restaurants and play games. Two years after, in 2004 Apple begun the creation of iPhone by employing one thousand people to work on a secret “Project Purple”. Apple really believed that they could change the world. (Daniel Hodges)The biggest phone company that dominated the market share for over ten years has collapsed due to new competition as well as bad decision making and inner problems. In 2007 Apple revolutionised the phone market by introducing the iPhone that is way smarter than any smartphone and very easy to use. Since that year Nokia’s market share has been decreasing each year.
Nokia lacked innovation. Its competitions were progressing so fast that they could not catch up with it, so they started to fall behind. Unlike Apple, Nokia did not have the vision of future smartphones and focused just on making best speaking devices. They underestimated the importance of the transition to smartphones and failed to recognize the increasing importance of software. Even with all the research and development Nokia was unable to fulfil consumers’ needs. And the inner conflict between the top and middle managers was an obstacle for Nokia to progress.
The brand itself could not harm Nokia’s market share. Nokia, as I mentioned before was already the pioneer in the phone industry, however lack of innovation as well as bad corporate strategy led to an unfortunate failure.