Looks like Nokia really dropped the ball when it came to the iPhone. Recent findings from the “Nokia archive” show that at least nine employees were freaking out about the iPhone’s potential when it launched in 2007, but management just brushed them off.
Back then, Nokia was the king of the mobile phone world, holding about 50% of the market. They were not just making bank; they were also the go-to brand for teens who wanted something cool and stylish.
But management’s lack of vision started to chip away at that dominance, leading to a major downfall just seven years later. Things could have been different if they had paid attention to the internal presentation that came out right after the iPhone launched, which warned:
“The iPhone is a serious competitor. Its touchscreen interface could change the game.”
The presentation raved about how visually stunning and responsive the iPhone was, highlighting its user-friendly design, virtual keyboard, and seamless apps. The team stressed that Nokia needed to get on the ball and create its own touch OS to keep up.
They also pointed out that the iPhone would grab the attention of the American media, and if Apple could pull off selling it at a high price, it would open up a whole new luxury market.
Fast forward, and it turns out those warnings were spot on. Nokia’s management totally underestimated the importance of internet access and the shift in mobile apps. They did try to respond with the 5800 XpressMusic phone, which launched in October 2008 and sold over a million units by January 2009. But then they switched to Windows Phone, and that popularity fizzled out fast.
That was a huge blunder for both the phone and the company. By 2013, Microsoft swooped in and bought Nokia’s mobile phone business for $7.2 billion, effectively kicking the brand out of the smartphone game.
Interestingly, Microsoft didn’t see the iPhone as a big deal either. Steve Ballmer, the CEO at the time, laughed off the iPhone, saying no one would want to type on glass. Back then, Windows Mobile was seen as one of the top smartphone platforms, so his confidence makes sense.
