The intriguing history related to Apple that we uncovered last week continues to unfold. A confidential internal presentation, recently revealed in newly-published archives, indicates that at least nine people within Nokia recognized the massive threat that the iPhone posed the day after its launch.
Unfortunately, senior executives did not heed their warnings, and within seven years, Nokia transitioned from being the leader in the smartphone market to exiting it entirely.
As we’ve pointed out before, there’s a common tendency to believe that a company currently in a dominant position will always remain so.
On the eve of the iPhone’s debut, Nokia held approximately 50% of the mobile phone market share, with no other competitor coming close. The company not only dominated financially but also set the trends, being the stylish brand that teenagers aspired to use.
However, the senior leadership failed to recognize that the iPhone’s launch marked a turning point. The future belonged to keyboardless smartphones, and Apple was on the path to becoming the go-to trendy brand, leaving Nokia behind. Just seven years later, the Finnish giant had exited the smartphone realm.
Had they listened to the insights from a group of nine employees who crafted an internal presentation the day after the iPhone’s unveiling, things might have turned out differently.
In the executive summary reviewed by Fahad X (via Daring Fireball), the team stated:
The Apple iPhone represents a serious contender in the high-end market.
The iPhone’s touchscreen UI could establish a new standard of excellence. It introduces a new UI paradigm that promises remarkable ease of use, featuring cool, seamlessly integrated internet applications. Nokia must develop its own touch UI to compete.
This new user interface may redefine what constitutes a superior user experience across the market. It has been described as “visually stunning and incredibly responsive.” Given that user interface has been a core strength for Nokia, the iPhone’s UI presents a considerable challenge.
The iPhone is set to capture the attention of the US media. If Apple succeeds at its announced price point, it will create a new high-end market.
John Gruber pointed out that the team didn’t get everything correct—they overlooked the importance of web access and how Apple would transform mobile apps—but nonetheless, had Nokia’s board chosen to listen, it could still be a major player in the smartphone industry today.
Image: Nokia
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