These are the reasons, Why Nokia failed

Mobira

Background

Today we are going to explain about the reasons; why Nokia failed to survive in the market. Nokia was established in 1985 in Finland as Multinational Corporation involving in different technology like communication, information technology and consumer electronics. Later it bought Mobira telecommunication. Nokia produced different cellphones around 1980’s and 1990’s which were popular all over the world. Following are some of the cell phones produced by Nokia earlier.
1982 :- Nokia produced Mobira Senator, first phone which can be used in cars. It was about 10 kg of weight.
1985 :- Nokia Mobira Talkman was its second phone which was about 5 kg and it was named as first transportable phone.
1987 :- It was the phone which was about 800 gm only. It was named as Nokia Mobira Cityman, whose sales was increased throughout the city.
1991:- The prime minister of Finland, Harri Holkeri made first GSM call via Nokia cell phone.
1992:- Nokia launched 1011 series handset that spreads into Europe and US markets. Nokia predict to sell 40 million handsets but 250 million handsets were sold.
1994:- Nokia launched 2100 series feature phones which they aimed to sell 400 thousand handsets but it was sold more than 2 million handsets.

Why Nokia failed; Mobira Senator :1982
Mobira Senator :1982

Nokia became the no 1 mobile phone company leaving behind Motorola. By 1997 to 1998 Nokia made 25% of share market in America, Europe, Russia, India, China and other major countries. Nokia launched new handsets which were popular around the world. Top 20 handsets out of 50 were of Nokia. Nokia gains its share market more and more day to day.

2003-2005:- Nokia handset 1100 and 1110 series captured 70% market share India.
At the time different mobile companies like Samsung, Oppo, G:One, Lava were emerging in the global market. Nokia sold 450 million handsets and was in the top in the world.

Failure starts of Nokia

Two major American companies Apple and Google were emerging in American and European market. Nokia was losing its market in America and Europe but emerging in Asian market. Google and Apple were taking international market whereas Nokia becoming limited in Asian market. China at the time was building low cost mobile feature phones. Chinese companies were going ahead than Nokia in Asian market. China was manufacturing large number of phones. European and American companies were sharing with China for manufacturing mobiles. China became the hub for mobile phones. In 2007 to 2008 Apple and Google were hiding in huge mass, but in 2009-2010 they were taking the market whereas Nokia was in its own state.


Nokia at high end were making better phones but at that time; time was ahead of it. At mid-range Android was leading the market increasing its sell. At low range Chinese phones were emerging. Due to Apple and Android, Nokia was destroying its market. Nokia believes on its hardware but Apple and Google along with other cell phones were relaying on software. Apple built 3 million apps in its app store, android built 1.25 million apps on play store where Nokia has less than 20000 apps. Developers were building apps for Android and iOS, while Nokia was relaying on its Symbian OS.

Nokia thought to gain market with its Symbian OS. Where the community was built with Android where mobile handset makers (LG, Samsung, Lava, Motorola, HTC, e.t.c) can build their own apps for free of cost in Android and that’s why they adopted Android on their handset. And Apple has its own standard for its handset as it was making different electronics devices that includes iOS. The independent community was accepted by all other smart phones to use Android OS. Nokia on the other hand relayed on Symbian and falling its name.

Nokia Smart Phones
Nokia Smart Phones

In 2011 CEO of Nokia Olli-Pekka Kallasvuo resigned and new CEO Stephen Elok joined in September 2011. Nokia wanted to bounce back its market, and went to meet Google CEO to take Android for Nokia. But Nokia didn’t take Android thinking they wanted to be unique of all and CEO returned back. Nokia wanted to create independent network in high market. Google create monopoly in the market but still Nokia was thinking of its independent. On the other hand Nokia was cutting down its employees due to its loss in market. Nokia was trying to go ahead alone in the empty desert.

Another mistake

Again Nokia thought to take windows from Microsoft for their software. Microsoft bought Nokia in 2016 and sold it back to consortium of former Nokia employees. Again it was another wrong turn for Nokia as windows mobile market was too low and nobody were creating apps for windows and apps not compatible with others. On the other side Google and Apple were enlarging with their apps. Nokia was unable to gain its market with windows too as windows had no ecosystem. Android and Apple were creating leadership in the world.
The owner, app developer and manufacturer all came to Google. But Nokia and Microsoft were alone.

Why Nokia failed
Mobile OS Share 2009
Mobile OS Spastics by 2018

Turning back to life

In the end of December, Microsoft decided to end its windows mobile service and warns to turn back to Android for its windows users. Nokia users can run windows apps after switching to Android. Microsoft already have launched Microsoft apps for Android like Office suite. At last unwillingly Nokia has to come to Android. Now it’s the time for Nokia to do something. Nokia is back from the dead with pure Android phones. Nokia phones are making come back. It is believed that Nokia will make a change to it’s previous life.

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