What is the perfect word to describe the Finnish multinational communications provider NOKIA? Well, for those who belong to the era of 80’s and 90’s, the perfect description in one word is: Nostalgia. Let it be in terms of usage with NOKIA being your first phone or the unforgettable moments that you had while using this phone to communicate with someone special. This brand will always remain in our minds and hearts forever.
But sadly, things didn’t work out in a positive way for NOKIA in the recent years. It was the world’s 274th-largest company measured by 2013 revenues according to the Fortune Global 500 and is a component of the Euro Stoxx 50 stock market index.
In 2014, Nokia employed 61,656 people across 120 countries, did business in more than 150 countries and reported annual revenues of around €12.73 billion. But what really went wrong? The obvious reasons that you can formulate are that NOKIA was a poor lamb and the wolves like Apple and Android had a healthy feast on it. But the real reason behind the fall of this tech giant is much more grave.
Overestimation of its own strength
NOKIA overestimated the strength of its brand, and firmly believed in the hypothesis that even if it was late to the party, it surely can create abundant noise.
The first generation iPhone was released on June 29, 2007.But Even after a year of it’s release and people starting to like this piece of technology from apple, NOKIA insisted on the belief that people will prefer their products over the iPhone, because of their superior hardware configurations and especially the brand value. There are a huge number of NOKIA fans who are still under the assumption that if NOKIA had stuck themselves to their own OS platform, instead of moving to the Windows platform, it still would have been in the game.
But even though the Windows Phone has been a flop, the harsh truth is that, by 2010, Nokia had already introduced too many disappointing phones, and its operating system had already proven too buggy, clunky, and unintuitive to win consumers over.
It wasn’t just that Nokia failed to recognize the increasing importance of software. It also underestimated to analyze and understand, as to how important the transition to smartphones would be. Their designs had started becoming so heavy and out of fashion that half of the jokes on phones during that time, were on NOKIA, with regards to their weight.
In 2008, Nokia was said to have one of the most valuable brands in the world. But it failed to understand the truth that brands today aren’t as flexible as they once were in the past. And in order to sustain their brand value, they will have to provide the users something that they want to use and something that is in accordance with the latest trend instead of following a legacy. Technology and legacy are the two ingredients that will never go in together without elements of a disaster in it or a trail of wayward failures. But, for Nokia, this is what they had implemented and it definitely was, a deadly combination.
What’s NOKIA now coming up with?
It seems like NOKIA has learnt from their past mistakes and now that they are aware of how the market runs, the mobile technology giant is now coming back with an Android offering of the users : One name that has been around for a while is the Nokia D1C – a name that we are not much sure of , with regards to a sooner release. As of now, the Nokia D1C is expected to be a mid-range smartphone, powered by the Qualcomm Snapdragon 430 SoC, options for 2GB/3GB of RAM, 5-inch/5.5-inch screen sizes, 13MP/16MP rear camera options, 8MP front cameras, 16GB native storage, and run on Android Nougat customized with Nokia’s Z launcher.
So, what is NOKIA doing here now? It’s just putting all it’s eggs in one basket. As most of the NOKIA fans are waiting for this phone to release, it’s only the customer response for this product that will define the fate of NOKIA in the smartphone market.