New data reveals important information about Nokia's reaction to the launch of the iPhone in 2007.
iPhone makes Nokia phones lose ground.
It is known that when the iPhone was launched, Nokia was dominating the mobile market with about 50% market share. Their products were not only highly appreciated for their technology but also very fashionable, becoming the favorite choice of young people. However, the appearance of the iPhone with a touch screen replacing the traditional keyboard created a revolution in the mobile industry. As a result, Apple quickly asserted its position as a "cool" brand, while Nokia began to lose its position.
The presentation, by a group of nine Nokia employees, emphasized that the iPhone’s user interface could set new industry standards. “The iPhone is a serious contender,” it said. “Its touch interface promises unparalleled ease of use, while its web application integration looks seamless. Nokia needs to develop its own touch interface to avoid being left behind.”
If Nokia's leadership had listened to its employees, things might have been different.
Despite the dire predictions, Nokia’s top executives took the warnings with a grain of salt. According to analyst John Gruber, the presentation made no mention of the revolutionary role of mobile apps and Internet access—factors that became key to the iPhone’s success. If Nokia had at least introduced a touch-based interface, the company’s fate might have been very different.