In 1998, Nokia surpassed Motorola to become the world’s most popular mobile phone company. As we all know, Nokia is a Finnish telecom, consumer electronics, and IT business established in 1865. But what happened to this high-tech company, and why doesn’t Nokia make cell phones anymore? Here is the best review for 2023 on Nokia-branded smartphones.
Background on Nokia: Why was Nokia a failure?
In history, HMD Global, a firm started by former Nokia workers that debuted a range of smartphones in 2017, now owns the Nokia name. The company lost its dominant market share because it needed to adapt to the rise of iOS and Android OS apps.
Before smartphones came out, Nokia’s cell phones were the most popular on the market, and they are likely to stay the company’s most well-known product. Nokia devices were not only reliable in terms of battery life, but they were also stylish and looked to the future. In 1998, Nokia beat Motorola to become the market leader in making mobile phones. After just nine years, it had captured a whopping 51% of the worldwide market.
Then, Nokia launched the Symbian OS system after seeing consumer preferences shift with the trend. By that time, however, Apple and Samsung had already established themselves market leaders. Symbian’s OS needed help to gain traction. Nokia’s demise may largely be attributed to this factor. Not only this main reason but also there are plenty of reasons behind these failures and re-designing the brand in the market. Let’s find out the truth and story of why doesn’t Nokia make cell phones anymore.
Why doesn’t Nokia make cell phones anymore?
This phrase has changed in the past year, 2022, as Nokia released their new phone series with 5G internet high-speed facility on their smartphones after a long silence in the mobile phone market. Let’s see what happened to the Nokia brand. And the real reason for that.
The reluctance to upgrade smartphones: The biggest reason why doesn’t Nokia make cell phones anymore
There was a missed opportunity for Nokia to get on the Android wave. Nokia refused to change when everyone else in the mobile industry was focused on perfecting their devices. Nokia’s top management thought people wouldn’t like touchscreen smartphones and would keep using QWERTY keypads.
This false assumption was the first domino to fall. Nokia never saw Android as a development, and the company had no interest in switching to the Android platform. In time, Samsung came out with a line of Android-powered phones that were simple, cheap, and easy to use.
Having trouble keeping up with the changes: The biggest reason why doesn’t Nokia make cell phones anymore
Nokia was always behind the curve and needed help to keep up with the times. Nokia has long been well-known for its hardware but needs to pay more attention to its software offerings. At first, the company didn’t use new technologies because it feared how conservative customers would react if these new technologies have added to mobile phones.
The company desperately needed a distraction, but Nokia discovered this too late. Nokia was the only company to make the later switch; almost every other major company had already begun making high-quality smartphones. Therefore, there was still time to be an industry pioneer.
Deal with Microsoft
Nokia’s fall may also have been caused by the bad timing of the company’s partnership with software giant Microsoft. When the software giant struggled financially, the corporation sold itself to Microsoft.
A look at Nokia’s sales figures reveals a mobile phone manufacturer needing help. Samsung and Apple were both making significant steps forward in terms of innovation and technology at the same time. Nokia should have kept up with the rapid and severe shifts in the market. Many people think that Microsoft’s purchase of Nokia was a huge mistake that ended up helping neither company.
Products need to be updated more.
Nokia’s troubles were exacerbated by its failure to innovate its product lineup. Nokia’s Windows Phone came out with only the most basic features, while competitors like Samsung and Apple put out new, more advanced models every year.
Nokia’s Lumia line was an attempt to restart the company, but it, too, failed because of a lack of novel features. The dull, uninteresting facial features didn’t help matters. That made 3G-capable phones after the 4G era arrived. Finally, these phones also developed the Asha line of smartphones, but it was too late.
Poor leadership and a toxic company culture
Nokia’s culture was full of worry, with leaders who needed to be more stable and middle managers who were too afraid to speak up. In the meantime, some upper-level employees intimidated lower-level workers by suggesting they weren’t trying hard enough. Some people needed to learn more about technology to accurately judge the limits of what was available, which made it hard for them to set goals. On the other hand, Apple only hired qualified engineers for equivalent roles.
Does Nokia still exist in 2023?
Yes, it is on the market as of 2022, as it has relaunched its products in response to customer feedback and competitor products entering the market. The main goal was to be the leader in 5G smartphones by 2022, which they achieved, according to market research.
Still, the product should get more attention than other operating systems and Android smartphones.
They have designated three main series, “C series,” “G series,” and “X series,” for the smartphone market. The newest 5G phone on the market has features that will last a long time and an AI experience similar to iOS.
Current Situation of Nokia Mobile Phones
In 2023, mobile networks are expected to be Nokia’s fastest-growing business area. This market growth is because 5G is overgrowing in India, and 5G standalone (SA) core networks are being set up worldwide. Nokia revealed Monday that its full-year net sales were EUR 24.91 billion ($27.04 billion), an increase of 12 percent yearly.
Net sales increased by 16% in the fourth quarter (or 11% when adjusted for inflation). And during the period in question, mobile networks’ net revenues were EUR 2.96 billion ($3.21 billion), up 7% (or 3% on a constant currency basis).
More information about the 5G phones that have just come out is on their websites and Amazon. But Amazon has yet to show much interest in this product because it isn’t as good as other iOS and Android brands in several ways.