Nokia's internal presentation after iPhone was launched (2007) [pdf]
(nokia-apple-iphone-was-launched-presentation.tiiny.site)489 points by late 2 days ago
489 points by late 2 days ago
Nokia also had a ex-Microsoft exec (https://en.wikipedia.org/wiki/Stephen_Elop) that had the goal of ensuring Windows Phone would succeed, and tanked Nokia with it.
I was on the DVLUP project where Nokia and Microsoft attempted to inject energy into windows phone app development. We could see the tension between the two companies as we were a 3rd party contracted by Nokia to build the platform. The Nokia exec we were in contact with was fantastic, and really tried to make Windows Phone a success. Unfortunately the Nokia IT teams we worked with were not happy and essentially tried to sabotage through inactions (we just needed OAuth / SSO to link accounts and track app installs, it took over 3 months of email chains within Nokia).
People blame Stephen Elop. But the person in control of the Nokia board was former CEO Jorma Ollila who headed Nokia through its glory days and had a lot of power. Nothing happened in Nokia without his approval during that period.
The board recruited and invited Stephen Elop. Part of his appointment was the board handing over the company on a silver platter to the new CEO. Negotiations for the acquisition started almost right away in secret. And most likely there were high level discussions ongoing with Microsoft and Steve Ballmer before Elop's appointment.
Jorma Ollila retired as a CEO around 2006; he wasn't really pushed out and Nokia was still performing well. He handed the keys to the company to a non technical CEO with a financial background (Olli-Pekka Kallasvuo, aka, OPK internally). That was the first mistake. OPK was a bit hands off throughout the Iphone and Android rollout. There was no vision, no leadership, just a lot of infighting between heads of various units.
The second mistake was selling out to Microsoft and all the share value implosion that came with that. Microsoft bought several companies over the years. Nokia was one of the smaller ones. That's how bad it had gotten. At the peak Nokia was worth 150 billion or so. MS bought the phone unit for 5 billion. The later Linkedin and Github acquisitions were worth more.
By the time Stephen Elop was brought in (by the board, headed by Ollila) to fix things, it was too late. There were a lot of internal battles as well between the big business units. A whole string of CTOs with no power whatsoever that were appointed and let go. Including Scott McNealy who never really made any impact and was there only briefly.
> Jorma Ollila retired as a CEO around 2006; he wasn't really pushed out and Nokia was still performing well. He handed the keys to the company to a non technical CEO with a financial background
I wouldn't say that Ollila had a technical background either. Ollila has 3 MSc degrees, 2 in economics and 1 in engineering. But after graduating for the 2nd time, he worked first in an investment bank (Citibank), then in the finance department in Nokia before rising to the executive level. I would say he has a financial background.
Was this around the time Microsoft kept switching what "windows phone" was? I remember that the one friend who got into it loved it, and then they released something completely incompatible and he abandoned the platform.
2009 and earlier: Windows Mobile was based on WinCE. The UI was garbage but the innards were pretty functional, and there was desktop-like multitasking. Unpopular opinion: they should have just done a UI refresh of that thing and moved it to an NT kernel. There were a lot of cool third party hacks on this platform.
2010: Windows Phone 7 was still WinCE, but they removed full access to WinCE APIs, and got rid of PC style multitasking. They had a new UI framework for first party apps. Then for third party apps they had a port of Silverlight that imitated the new UI style. The latter had really terrible performance.
They had to base this release on WinCE because the NT kernel port to ARM wasn't ready yet. Blocking access to "good" APIs could be seen as a way to ensure app compatibility for the next release.
2012: Windows Phone 8 had the NT kernel. Also, windows 8 and windows RT shipped. But the silverlight-inspired UI framework of Windows 8 was different from the Silverlight fork from Phone 7. So you had yet another UI framework rewrite to cope with.
I had the original iPhone, then swapped it for a flagship android and hated it. I tried Windows Phone out a few years later and loved it and had two of them over the years. Some apps didn't exist for it and that sucked, but the OS was snappy and something different that I really liked. The Nokia windows phones were great. I knew it was doomed though as when I got them from the carrier, I was apparently like the only person despite it having its own wall at the brick and mortar store lol. I still miss it.
If memory serves, it was a custom kernel and OS, then a semi-custom kernel with a few OS components shared with Windows 8, and then the Windows 10 'core' kernel (same as on the Xbox One?) with many shared OS components.
At each step they left the majority of devices behind.
What was equally worse was the triple (quadruple?) switch of app frameworks. If I remember correctly it was a dotnet abomination, then ?? then WPF and finally Xamarin.
Good luck convincing your platform 3rd party developers to entirely relearn and rebuild their app four times over in the span of a few years.
Interestingly enough, Windows Phone itself was far ahead of it's time. Buttersmooth UI, flat UI, built-in global and app dark modes, all in the early 2010s.
I think it was actually a good idea. I think they correctly predicted the Android market and saw Windows Phone was a good way to differentiate their phones from everybody else. If you look at the history of Android manufacturers, it was a long slog of brands trading off popularity and hardly making any profit until Samsung eventually became the only mainstream player.
Nokia was dead company walking before Stephen Elop. Elop saw the writing on the wall and made one of the choices available. A different CEO would have made a different choice but ultimately at that point it would still have been too late to save Nokia.
Nokia was a great hardware company that missed the boat when the market changed to be based around software. When the market changed again to be based around ecosystems, Nokia was beyond saving.
Was there with the company as intern and junior during Nokia and Microsoft days for Nokia Maps.
In my opinion Microsoft fumbled the app store by bloating it with questionable KPIs on number of added apps by anyone able to submit templates apps, while not getting key apps like WhatsApp on board. S\so it was a hard sell to have people's ecosystems. Same syndrome as with Zune, Tablet PC, and Microsoft Store on Windows.
Build quality and hardware of the Lumias was second only to iPhones and definitly better experience than Android.
The old Nokias had no chance compared to those, and I agree with the assessment that Nokia as Android-Vendor would have made little sense either.
Nokia is still around, because NSN survived this mess.
As someone on the Networks side, with occasional visits to Finland headquarters, Nokia Mobiles would have done alright, if they kept down the Symbian/Linux path.
The Burning Memo killed the remaining trusth from app developers, in a company and ecosystem that was pretty much anti-Microsoft, just made the transition to have Qt properly integrated in Symbian, with PIPS and nicer Eclipse based IDE than the previous experience.
Only to be told to throw away all that developer experience, adopt Windows and .NET.
> made a different choice but ultimately at that point it would still have been too late to save Nokia.
You think if they made just a single decision different and bet on Android instead of Windows, they would be in the same spot today? I wouldn't be so sure. Samsung hedged their bets across both and succeeded. Both weren't great at in-house software and Nokia made better hardware.
I don't think Nokia at that point would have gone with Android with Google services which what the market wanted. They would have gone with Android with their own services (Maps etc) and app store.
I don't think that would have succeeded against Samsung and the Nexus phones.
But TBH I think going with Android would have a better move than what Elop did.
Now I can't find that poem about Elop sinking the Nokia ship or something like that.
This one, the burning platform memo? https://news.ycombinator.com/item?id=32698044
No it was more like a song or poem or Ahab kind of thing.
I was also at Nokia during this time and recall OPK (Olli-Pekka Kallasvuo), during a visit to the Beijing office, giving a talk where he talked about the difficulties of pushing new things through the organization.
More specifically, he said that even he would push for investment and innovation in one area, but that as the decision made its way through the org, it became something else. It was an odd moment to see a CEO say something like this, and was a clear indicator to me that we didn't have what was necessary to really pivot the way we needed.
The follow up N9 was that. It was great. Elop canned it.
I had to import one from Australia. It was totally worth it.
I'm very late to the party here, but as a smartphone product manager at Vodafone I had a front-row seat to the entire arc--which actually started with many telcos being angry at Nokia for their arrogance and near-monopoly, before the iPhone came out.
Nokia never really had a chance--the N-series was a mess of patched software, they had no real Linux alternative, and their supply chain was fragmented six ways from Sunday because they churned out dozens of SKUs.
Then everyone went into denial because they couldn't believe Apple would be successful by going outside established norms (like refusing to customize the homescreen or packaging for telcos, etc.).
A few telcos tried to respond by picking their own champion smartphone (Verizon did that in the US). I ended up having to talk my CMO out of going all out on promoting the Blackberry Storm (which was a dud of epic proportions).
I later became the product manager for the iPhone as well, and that was an amazing roller coaster I will eventually write about (it's been around 17 years, so I think I'll get to it sometime soon).
But I would recommend folk interested in the intervening years to read Operation Elop: https://asokan.org/operation-elop/
I also had a front row seat to that...
I had a Nokia Symbian phone, the 7610. I loved how 'quirky' it was:
https://en.wikipedia.org/wiki/Nokia_7610#/media/File:Nokia76...
and I was able to download an NES emulator for it! I remember playing Mario 3 on my way to my first post-university job. I really felt like I was living in the future compared to the phones others had. And then Symbian just... never got better.
I was ambivalent about the MS purchase of Nokia but I was still optimistic about a lot of it. Nokia always made top-notch hardware but it was obvious from the outside that they just didn't have the software talent (the N900 was a wonderful device for the tech set but it had no mass market viability). I maintain that when it was released Windows Phone was the best mobile OS going. But Microsoft fumbled hard by reinventing the wheel with Windows Phone 8 and destroying an already emaciated App Store. Arguably they fumbled before they even released Windows Phone, spending $1bn on the Kin and then almost immediately nixing it:
https://en.wikipedia.org/wiki/Microsoft_Kin
Looking back at it all today... iOS is fine. Android is fine. But man do I wish we still had a couple of other viable competitors in there.
The N-series were great too, I loved both my N73 and later a N82, both with Gameboy emulators.
I also bought a Garmin license where I could install Garmin on my Symbian phone to do car navigation on my phone, this was at a time where most people had specific hardware for GPS navigation, now we're used to having apps on our phones, but it felt quite special back then!
I worked, briefly, at Symbian.
They were mind-bendingly, staggeringly, bureaucratic - like to an extent and in a way you absolutely could not imagine if you had not actually seen it with your own eyes.
I love Finland and the Fins. But there is a certain type in that population that is extremely bureaucratic. The only country in Europe that has a contingent that comes near is Switzerland, also a great place to live.
> The iphone was solidly in charge by then
Nit: the iPhone was only "in charge" for a brief year or two, and then Android ate its lunch in terms of marketshare.
What is very interesting is that Apple has displayed twice over ( MacBooks and iPhones) that a minority marketshare can capture the vast majority of profits in that market. OEMs like HTC and LG made a few bucks profit off of any phone, sometimes even losing money on the cheaper models. And that's with Google footing almost all the cost of developing the OS.
> the iPhone was only "in charge" for a brief year or two, and then Android ate its lunch in terms of marketshare.
This is true worldwide, but there are significant regions where iOS quite handily beats Android (such as the US, Japan, and even some parts of Europe).
This is pretty much just describing the bimodal nature of most markets.
Extracting $100 in surplus profit from someone who's not on the poverty line is easier than extracting $10 from someone who is.
> Nit: the iPhone was only "in charge" for a brief year or two, and then Android ate its lunch in terms of marketshare.
Marketshare is less interesting than wallet share for many products.
> a minority marketshare can capture the vast majority of profits
Ah, yes, exactly, there it is.
iPhone offers wallet share, and continues to eat Android's lunch in both total spend and ARPU.
There are two cohorts to be in charge of, for two business models: selling something, or giving it away to show ads.
This looks like Android dominates until you get to the section "iPhone vs Android App Spending" and start doing the math that it's winning on total dollars never mind the number of devices.
https://backlinko.com/iphone-vs-android-statistics
Even then, advertisers tend to advertise because they want to sell something. Advertisers marketing something everyone buys, Android audience is best to advertise to. Advertisers with something that depends on extra cash in the wallet before the buyer considers it, iOS audience makes sense. Ad rates reflect this.
Astonishingly, even on the handset makers themselves, there were years Apple captured over 100% of the revenue. That sounds nuts till you dig and see it's as simple as Apple made money, while so many other handset makers lost so much money.
I was a day one Android fan (got the Nexus One) but I'd actually debate what "in charge" means... to me it doesn't necessarily mean dominating market share. I think the iPhone defined the touch-based smartphone when it came out and continues to do so. These days Android has a much more cohesive concept (in the form of Material UI and so on) but in the early days it was just a hodgepodge mess of ideas, even if it dominated the market.
> ...in the early days it was just a hodgepodge mess of ideas, even if it dominated the market.
and it was glorious; the intent-system and Notifications drawers were Androids calling card. Intents were a blessing and a curse: being able to replace apps was great, but the variety in design language, not so much.
Being able to reach into apps' storage was insecure, but freeing one's data from SQLite files was fantastic.
it dominated the market because they seized the 'budget' smartphone market. Back in they hayday everyone dreaded a new android app coming into the shop because of all the absolute shit phones (slow cpus, tiny screens) the client wanted us to support because there were so many in the market (overseas).
iPhone did and still does run the market, everyone else is a follower.
This is probably the most important bifurcation point in the history of European tech. Today's malaise and grasping for direction has much to do with the demise of this pioneering enterprise. And the fact that it does not appear to have been pre-ordained adds poignancy.
European tech was doomed in late the 90s when the EU decided to throw in with Microsoft et al instead of supporting building out a homegrown alternative ecosystem based around open source software.
Yes, but now it doesn't even have national champions. The last one standing with some pretense at being still with the times is probably ASML.
One wonders whether at any point anybody will ask any tough questions about where Europe is heading as far as technology goes.
Which is exacly why Finland should have blocked the MS deal. Nokia was a HUGE percentage of Finland's GDP.
I was working externally for Nokia around 2004~2006. They were already competing with Apple at this point. Nokia were scared by the iPod and the Rokr. They wanted to secure the mobile and online music market. They were trying to beat Apple at iTunes, to the point where they gobbled up one of Apple's biggest competitors in the music space (OD2-Loudeye).
When the iPhone launched it showed Nokia was woefully behind. All their devices instantly felt like they were from a previous age.
Delaware State Lost Property says I still have a bunch of Nokia shares to collect apparently lol
> These people had a blind spot for software. They thought they were still in the electronics business
I believe Sony failed to transition for similar reasons. They really owned the hardware era with its own kind of ui, pattern ... but everything they did in software was lacking.
So many manufacturing companies fail at software. They think of software like it's any other component on the BOM. As if it's just like a screw or a piece of molded plastic: Build the cheapest "software part" that meets the requirements (or buy it from a "supplier"), and then bolt it onto the product some time during assembly.
They don't think of software as a major component of their brand. They don't think of software as the user's interface to (and perception of) the product. They don't think of software as an ecosystem with updates, a changing security landscape, and third party developers and integrators. It's just one of 500 things on the BOM that gets sourced and assembled.
I've seen companies where each branch in the software repo is named with a part number, and they're all somewhat similar, copy-pasted around from one another, but with no real concept of what's an earlier or later version or updates, no concept of where the codebase came from or is going, and no real structure other than "This software blob is part 003-2291-54 for product 003-2291-00. The product is shipped and we will never look at the code again."
I remember that, too. Nokia even had an "app store" on a lot of their business series devices (the E-series), but it was clunky to use, had no payment options and was not really friendly for 3rd party developers. There was probably a window where, had Nokia pushed to compete with apple on that field, they could have gotten a leg up and kept Symbian and symbian apps in the race for (way) longer. But that invest and speed needed for software was probably not doable in the behemoth that was Nokia at that time.
As someone who was there, I recall numerous projects instituted to reduce the number of steps it took to even install an app on the device. It was mind-numbing to see what they were trying to extract themselves from.
The presentation is evidence itself that Nokia was bureaucratic and unlikely to stay competitive.
The PPT was supposedly about the iPhone but the (well put together) slides for that don't start until page 14. Credit was given to Timo Partanen, along with contributions from Scott Cooper, Gordon Murray-Smith and Sanna Puha.
Pages 3 through 11 were market analysis. Boring and irrelevant. The only message that should have been given is that iPhone will disrupt the market and Nokia desperately needs to create a competitive "cool" product. The presentation said several times the iPhone was "cool" because of its UI and touch interface versus "buttons". But I think they missed the point. The iPhone was a new category i.e. it was more of a computer than a phone with some computing abilities.
The "recommended" actions slide is on page 12 & 13. I assume this was created by Peter Bryer as his name was listed on top of the first page. It lists 10 recommendations along with sub recommendations. For a large bureaucratic company, good luck getting one recommendation executed. Besides, all ten recommendations missed the point. This was the automobile replacing the horse and buggy. Nokia wanted to tweak their way through. They eventually tried to partner with a "software" company in Microsoft; but Microsoft at that time was the geriatric helping the geriatric. I would argue Nokia would have given themselves a better chance of success by creating a "skunk works". Assemble their best engineers and designers into one team and free from interference from all the internal politics. Their goal would be to create a POC that could rival the iPhone's "cool factor". And do it in 6 months.
> MS killed the whole division shortly after Satya Nadella took over and was sorting out the mess left by Steve Ballmer.
These have always been the real crimes in my mind.
Ballmer wasn't an idea guy, he was a top-tier salesman / cheerleader, and he definitely "understood" what actually made Microsoft successful (put out a product, then allow third-party developers and support to extend it / support / learn it inside out and be a VAR).
Ballmer made the same mistake a lot of people in that era made, which is that they didn't realize the software was the most important component. The era of "killer hardware" never actually existed in the smartphone space, because you had a limited form factor to begin with. You couldn't cram an NVIDIA GeForce 8800 Ultra in your phone, so your software had to be useful and on-point.
I think Satya saw the entire Windows Phone debacle as a failed experiment and probably looked at Apple / Google and just threw his hands up in frustration.
Getting developers onboard for Windows Phone was critical and not enough time, money, and attention was spent doing that. I think there was a degree of Microsoft arrogance there, along the lines of, "We're Microsoft, of course they're going to develop for our platform..." Meanwhile, in 2024, the Windows App Store is still a barren hellscape compared to even the App Store for OS X and you don't even want to talk about Google Play Store and iOS App Store vs Windows Store.
The prophecy was fulfilled - software will eat the world.
Ballmer, the person who pushed for and created the entire Microsoft Enterprise focus, is not an idea guy that understood what made Microsoft successful? This idea that Ballmer was some goof when he was actually considered a co-founder by Bill Gates which is why he received like 17% of the company when he joined.
Also, they put plenty of effort into getting developers to onboard windows phone. They even created multiple platforms that allowed devs to create a single app that worked across all windows devices(pc, phone, xbox) but developers decided, with some very influential devs being extremely vocal, that is was some sort of power grab to force devs to only deliver their software through the windows store.
Yes and no. Too late to take on Apple, but Microsoft could have persisted as a loss leader and finally at least had Enterprise Mobile in its pocket. Just don't actively burn third party developers. It would have been too late for courting hardware OEMs by then I reckon, though.
I was there during the end of the Windows Phone era and can confirm. There were even efforts for additional Linux based OSes post windows phone. Nokia just never had software in their DNA.
Nokia has a pretty successful business in things like cellular base stations, carrier networking, etc. - for example they brought their joint venture with Siemens (Nokia Siemens Networks) back in-house by buying Siemens' part out, and that does a lot of optical network stuff (DWDM backhaul equipment, etc), already had a cellular base-station business but then also bought competitor Alcatel Lucent, and a lot of provider network stuff came in with that (like FTTH equipment on the provider side). They also got Alcatel's undersea cable laying division.
So they still have a bunch of valuable and successful businesses even though their consumer business went to crap.
So they gained a reputation for reliability/durability and pivoted to infra?
Nokia had, for example, excellent RF engineering talent. Personal anecdote: back in the day a Nokia phone would get a call through when other brands didn't, on the same telco.
That talent found great use in cellular base stations. Nokia has been making them for a long time, no real pivot involved, more like a split of a conglomerate into per-vertical businesses. Fun fact: Nokia started as a pulp mill, they made tires and rubber boots, and so on. Think Mitsubishi or such.
Ugh, Meego was so good. I still remember watching the presentation, then Nokia tanking when it was announced they were switching to Windows.
Imagine a world where Meego, a proper Linux, took over instead of Android. And I like Android as a product, but the software stack is so strange...
Something clicked for me when I read your comment: the most amazing thing about Apple is that despite their corporate immensity, they still continue to ship generation after generation of cool products that compete and sell on their own merits. You don't have to be a fanboy to appreciate that.
Almost no other tech company that I can think of has been able to resist bureaucratic ossification. (Perhaps Adobe - to an extent?)
Really? To me, for example iPhones haven't changed at all in a long time, they get spec bumps but are essentially the same product, and people buy replacements mostly because of batteries going bad / apps bloating / fashion.
Apple's new products are surprisingly often failures, for their background. Vision Pro anyone?
Consumers always have the choice to buy a different phone. And in the case of buying an iPhone, they have the choice to buy a much cheaper phone. That so many of us continue to buy iPhones is proof that Apple is doing something very right. And that shows, and this is my main point, that they have impressively avoided being bogged down by megacorp bureaucracy.
I was at Palm when the iPhone launched, and one note from this analysis summed up Apple's new power in the market and how they really changed the landscape.
"Cingular has allowed Apple to launch a device with WLAN and inbuilt services"
At that time, the carriers controlled so much of the cell phone experience. We certainly would have loved to have launched Palm Treo phones with WiFi radios, but our carrier partners wanted the only way to get data in and out of the devices to be through their monetized data plans. They also wanted to control what you did with that data so they could charge for their own email or messaging systems or web portals. The same applied to app stores. Palm OS didn't have a unified app store at that time, just sideloading and some third-party methods, and some carriers had started making their own stores where you could buy apps billed through your cell phone bill. They hated the idea of a platform owning that, and I expect that was part of the reason Apple originally released it with no app store. They needed the phone to be a massive hit in order to gain the power to also bypass that wall that the cell companies put up.
Palm did benefit from the iPhone launch -- it had us uplevel our efforts away from the post-Palm OS phones that we were in the middle of developing that were aimed at the RIM market and instead try something radical with webOS, and when the Pre launched, it actually had WiFi on board, although the Sprint-exclusive Pixi phone lacked WiFi due to carrier request. There was some momentum there for a while, but then HP bought us, hit its own set of brick walls with carriers, and ditched the hardware business shortly after Apple started launching on other carriers.
I was at RIM at that time and saw _exactly_ the same thing. When I started in 2008, in addition to WiFi and apps they were squabbling with carriers about whether or not the Blackberry needed an antenna. Carriers were micromanaging devices to an astonishing degree.
The river of money from Macs, iPods and iTunes gave Steve Jobs a completely different kind of leverage in those carrier negotiations. Device only companies like Palm and RIM couldn't have broken that carrier strangle even if they did have the technology.
Were virtual network operators (?) - VNOs - a thing back then, and could a VNO make its own rules? If so, could Apple (or Palm or RIM) launch their devices without carrier compromise by also owning a virtual network? I guess this would have required a lot of money. Maybe Nokia could have done it?
No, the carrier leverage did not come from network policy, it came from sales-channel. That is to say, in those days one way or another every device passed through a carrier's hands before reaching the customer. So carriers controlled pricing, and to a large degree, marketing. If they didn't like your device they would refuse to sell it and then you were stuck.
Unlike RIM or Palm, Apple could realistically choose not to sell their device at all, or at least not sell it for a while, and so they were able to break the carrier oligopsony. It also didn't hurt that Steve Jobs was, well, Steve Jobs. A one-of-one business negotiator.
That’s not exactly true. What Apple did in every market was make deals with the #2 or #3 carrier that was desperate to steal market share from the leader.
Then when the leader started seeing customers lead. Apple could have the same terms with them.
The Pre was absolutely rad - and to this day the only phone I miss from a UI perspective, and the only UX and hardware that I thought had a chance of "out Apple'ing Apple".
The hardware was very well done, and I could type faster on my Pre than I still can today on any screen. I was never a Blackberry person, but I expect it was a simlar experience.
Even at launch, WebOS was a pleasure to use, and the architecture of essentially easy-to-make installable web apps was revolutionary at the time. It's a damn shame it never made it further than it did.
I read that as a failure of Palm's management, notably the ones that were negotiating with phone carriers. Jobs isn't the only guy who could have negotiated that kind of deal. Apple was a second run computer company that had almost no previous phone experience. They were not exactly negotiating from a position of strength, and the fact that only one carrier took them up on the offer shows just how tough it was.
It sounds like they really needed to say "Stop. We are the ones building the phone, you are the ones providing the service. We don't tell you how to build towers, you don't tell us how to build the handset, at least not the user facing part of the handset."
> Jobs isn't the only guy who could have negotiated that kind of deal
This is a debatable claim.
> Apple was a second run computer company that had almost no previous phone experience. They were not exactly negotiating from a position of strength
The iPhone was not a mobile Mac. It was an iPod with an inbuilt cellphone. iPod was HUGE. That was their upper hand.
But Cingular/AT&T clearly didn’t sign a lifetime exclusivity contract with Apple?
It didn’t even last 4 years.
I would expect that being a computer company gave Apple more leverage than the handset makers. Apple could afford to have none of the providers say yes.
Moreover, Apple had prestige. It wasn't that big but it already the high-end computer maker. And Apple had the already successful ipod which served as the basis for the original iphone. And the handset makers had been fundamentally dependent on carriers in determining what features made it to the final phones - which would have had to made them essentially weaklings.
Which is to say, I think there's reason to think Apple had strength in it's negotiation position relative to a random handset maker.
By the time that the iPhone was introduced, Apple was riding high on the iPod.
The resurgence of the Mac was already well under way at that point as well. Intel Macs had launched before the iPhone. Developer buy in to the Mac was pretty big by then.
But aside from that everyone was carrying around an iPod everywhere along with a dumbphone even if you were a Windows user. We all hated using the dumbphones and loved the iPod.
> At that time, the carriers controlled so much of the cell phone experience.
In English-speaking countries, maybe. But I remember at least Windows Mobile PDAs that had both a cellular radio and wifi before the iPhone launched. At least Russian carriers never cared at all what kind of phone or other device you were using on their network. You bought it unlocked for the full price from somewhere else anyway. There were various attempts to do US-style carrier-locked phones with 2-year commitment with no or little upfront payment, but none of that really stuck. The only exception to that was SkyLink, Russia's only CDMA carrier. They sold their own branded phones but even those, iirc, were for the full price upfront.
> Palm OS didn't have a unified app store at that time, just sideloading and some third-party methods, and some carriers had started making their own stores where you could buy apps billed through your cell phone bill. They hated the idea of a platform owning that, and I expect that was part of the reason Apple originally released it with no app store. They needed the phone to be a massive hit in order to gain the power to also bypass that wall that the cell companies put up.
This might actually be a partial explanation why some of Apple’s Executives held back on trying to convince Jobs until after they shipped, but initially, Steve Jobs was truly against the idea of running third-party apps on iPhones and had to be convinced.
I love sharing this trivia with people because really, can you imagine an iPhone without apps? It’s crazy to me to even think about, and back then during that first year and for many subsequent years after until this became public knowledge, I thought the only reason there wasn’t an SDK was because the first iPhone as a minimum-viable product for Apple’s vision of a cell phone and an SDK was always in the cards from before the start. Because why wouldn’t it? They had Cocoa! And a small but enthusiastic base of indie Mac devs that knew how to use it.
The Pre and WebOS were hands down the best non iPhone experience at the time. The mistake Palm made was going exclusive instead of pushing it everywhere. I don't think the Pre ever recovered from that in the USA.
The BlackBerry Z10 was also a great device but by that point there was no way BlackBerry to deploy a competing ecosystem to iPhone and Android for it to matter.
Mirror since the 3 already posted don't actually work: https://archive.org/details/document_20250116
thanks! FWIW I found it on-site by searching for
"Apple iPhone was launched" on https://nokiadesignarchive.aalto.fi/index.html
leading with some clicks to
https://nokiadesignarchive.aalto.fi/index.html?node=A0123
which took me to a site that worked.
2007. The presentation reads like an eerily accurate crystal-ball prediction of what actually happened in subsequent years.
Evidently, Nokia executives knew well in advance what the iPhone could do to their company.
Evidently, they knew they needed to do "something" to avoid an implosion of their mobile-phone business.
Evidently, despite their prescience and best efforts, they were unable to avoid disaster.
It's as if they were in the Titanic, and saw the dangerous iceberg well in advance, but somehow were unable to turn the steering wheel and change course.
Classic innovators dilemma.
The entire point of an organization is to systematize, standardize, and make reliable something that is working.
When that thing stops working, and the wind changes, that organization is now a giant anchor full of the wrong people doing the wrong stuff inside the wrong systems on autopilot.
My pet theory is that this is the natural lifecycle of almost all companies and the reason for that is that they underappreciate the luck involved in their first success. There are a few exceptions in the form of zombies (typically relying on a monopoly or legislative help), but there are very few repeatedly innovative companies.
There was another thread (I think on HN today) about investment strategies, and the ones that earned the most over the longest term were basically broad index funds rather than picking winners. I'd wager your point has a lot to do with why this investment strategy is best.
Doesn’t need to be a pet theory, that’s just an accurate assessment of reality.
I’m sure in Finnish business schools they spend a lot of time hand wringing over the question of why their domestic champion Nokia failed. What they should instead be focused on is why the disruptor wasn’t also cultivated domestically.
It’s nice to see that they got it even if they weren’t ultimately capable of doing anything about it.
I was an intern at BlackBerry (then RIM) Jan-Apr 2008 and it was astonishing to me how little anyone seemed to care or be taking the threat seriously. Obviously as a student I wasn’t in any of the high level war room discussions, but from what I could see it really did seem like the company was drinking its own marketing koolaid as far as the iPhone not being a relevant competitor because it was missing, like, cut and paste and encrypted email.
Yup. I remember saying to someone at the time, BlackBerry can scream "tools not toys" all they want, but I'm pretty sure Apple will have no problem adding encrypted work email to the iPhone whenever it becomes a priority... but the effort required to reinvent BlackBerry into a friendly, approachable device that people actually want to use, on the other hand, yeah.
The comparison to the Titanic was quite fitting. I was with Nokia then, and there was an overly large administration, excessive politics, and far too many managers and meetings for anything to be done on time. If I recall correctly, we spent 1-2 weeks in meetings just to discuss replacing apache with nginx as a web proxy for a less critical service. The actual work for that change would take about 10-15 minutes.
Although they attempted to make improvements, they failed to recognize what Apple understood: ordinary people wanted to walk into a store and purchase a visually appealing phone that was easy to set up and use, everything in 20 minutes max. Nokia had an overwhelming number of models, catering to everyone from older individuals to tech enthusiasts. If you wanted to buy a new phone, you had to be prepared to spend weeks searching for the right model.
I think the presentation was enough to show they knew they were in trouble.
But it also showed they didn't actually understand the significance of what was happening.
They thought essentially "all this fancy stuff will redefine 'cool', the 'high end'". They imagined a mid-range phone with special email features could slow the iPhone - ie, they imagined phone makers dribbling out features per dollar. But the real lesson of the iPhone was "the 'phone' is going to become a general purpose computing device with multiple connections to the world and hardware features controlled by general purpose software".
Quickly and accurately understanding the competitive landscape is hard, to their credit, and not sufficient.
Even if they came up with a strong response, it would still involve innovation and execution, and probably disruptions to their go to market strategy. All things that have large chances for failure.
Also, Apple at the top of it's game from the iPhone to the iPhone 4. If they were facing a competitor that was strong, but not quite so remarkable, they'd have had more room to maneuver.
Well, there are also a lot of assumptions and complaints about the iPhone and its impact that were commonly made at the time that ultimately didn't matter:
- Has no changeable battery
- Has no physical keyboard
- Is too expensive
- Has no support for Java applications
They clearly thought that these might be potential vectors for attacking the newcomer, but none of it worked out. Rather than having to play the game that the legacy phone makers like Nokia were playing, Apple just changed the entire game, and now Nokia et al were suddenly playing at a disadvantage where their existing knowledge and experience didn't really matter.
- Can't play Flash.
- Forces devs to release their apps as open software, HTML5 apps that anyone can just install the home screen from anywhere*, no marketplace gatekeeper needed, no 70% rev share to the telcos.
* This remains true, except if you really want to you can pay 30% in year one and 15% thereafter for shelf space, mobile apps PaaS, billing/subscription management, and end user app payments support. If you don't want to, you can still just release HTML5 apps like the Xbox Cloud player from Microsoft, downloadable direct from their web site, no App Store involved. And the HTML5 locally installable PacMan game from 2007 still works.
Not supporting Flash and Java was an advantage. Having apps written in an actual performant language made sense.
RIM with their minimal OS and a bunch of Java crap on top of it, just wasn't gone cut it.
Expensive is the only good point. But the issue with expensive is that, if everybody wants it, like 10% of the population will get it, and the other 90% will want it. And then you have product everybody is trying to get.
Classic big company problems.
"If we built a product like this it will cannibalize some of our existing and profitable divisions, and those existing divisions have a lot more clout internally than we do. The CEO worked his way up from those divisions. We can't make this."
Then someone else makes that product and eats your lunch anyway.
> N-Series and SEMC Walkman probably need to clearly undercut iPhone pricing to succeed in the market.
I think this is where they went wrong. They got scared of the new cool kid in school and immediately dropped all their prices, essentially marketing themselves as budget to Apples premium.
They needed to cut prices because phones could had a fully usable browser on mobile broadband with GPS that no one else did. There simply wasn’t a competitor for at least a few years, and it could even be due to the deal Apple made with ATT to make sure all iPhones came with unlimited 3G mobile broadband.
This is spot-on, and it's a remarkably common pattern when dominant players are faced with a seismic shift—even when it comes from within.
Kodak essentially invented the modern digital camera, and had a phenomenal lead going into the 90s. It was not a little side project—they hired IDEO to do vision work, design enclosures and create on-camera UIs. They poured money in, and did ship products. I'd love to know what happened internally, but externally they simply didn't move as quickly and aggressively as they needed to.
Very similar story at Polaroid—it's not like they didn't see the iceberg.
On the computing side, we have Xerox. Just couldn't figure out how to monetize any of the world-changing innovations from PARC.
Someone should really interview all these key players while they're (mostly) still alive and put together some kind of unified field theory of corporate disruption.
I worked with an ex-Kodak guy, and he related the following story to me from the 80’s or early 90’s.
Xerox was kicking their ass, they were completely owning the copier market. But it was a natural fit for Kodak, they knew imaging better than everybody, why couldn’t they get into this market? This guy was on a crack team of engineers a VP assembled to create a competing product. 9 months later, they demo a fully digital copy machine, working, ready to go, with competitive pricing and features.
But the higher ups at Kodak were incensed. They told the product needs a redesign, because Kodak was a film company, so the product needed to use film for copying. The revised product was a complete failure, and was the reason said engineer left Kodak shortly thereafter.
My take is devotion to brand identity is death during these critical inflection points. YMMV
The problem was that Kodak essentially was a film chemical production company pretending to be an imaging company. The switch to digital meant they could no longer get the fat recurring profits from selling film that they were used to. Kodak's value peaked at $31 billion in 1996 ($58 billion in 2025 dollars) while the total value of the digital camera industry today is around $8 billion (https://www.researchandmarkets.com/report/digital-camera). Even if Kodak had pulled off a masterful pivot to digital and captured the entire market, it would have been disastrous for the company and led to it shedding most of its employees.
This sounds like an apocryphal story. Kodak did actually make copiers in the 80s/90s, I know because my elementary school had one (early 90s, in a suburb of Rochester). It was one of the very large models that do duplex, stapling, ~100 copies per minute, etc. They just presumably weren’t good enough/cheap enough to get much market share vs. Xerox and Canon. I’m not aware of any of their copiers using film, not even sure how that would work.
Large companies struggle to cannibalize their cash cows from within. Powerful managers step up and fight against change.
I think Microsoft is a notable exception. I was impressed how they went all in on Cloud Computing (at the cost of installed software business like Windows and classic Office) and think it‘s now doing the same with AI. Maybe it‘s because they almost missed the internet revolution and arguably lost in mobile.
That's fascinating. It really seems that a lot of businesses end up hyper-optimized to deliver what they already offer, up until the point where anything that isn't a current offer is attacked by corporate antibodies. And that's when the growth they've optimized for suddenly stops.
Kodak also bought Ofoto in 2001. So basically they had over a decade lead on Instagram. What did they do with it? Try to drive people to print more photos, on Kodak paper. I don't think they ever really embraced digital, maybe isolated parts of the company did, but the film/print cultural inertia was just too strong.
If you aren’t already familiar, Clayton Christensen’s theories on this, on innovation and disruption, are widely praised.
One of the problems for Kodak was that selling people digital cameras was always going to be just a fraction of the profit of selling them film.
Today, in 2025, Fujifilm makes more money from selling film (Instax instant photo film) than they do from digital, even though they "won" in digital over Kodak to some extent.
Same like 3Dfx and many others. Miracles happen too often........
The whole report shows that it was a company being run by bearcats and middle-managers who focused on sales rather than product. The detailed out exactly what was coming and why it was great and their general response is atrocious. Some of the highlights of the presentation which stood out to me (on page 12):
1. "Work closely with T-Mobile"
2. "Prioritize touch UI development, simplifying basic functionality and PC suite development very high."
4. "Analyse what could be Apple’s next release of “iPhone mini” to mass market price points and plan counter-measures for it."
5. "Kill market for such an expensive device by filling mid-range with own/Google/Yahoo experiences"
6. "Accelerate Nokia's own free push e-mail project and make it less hidden within the company."
7. "Investigate and play hard in possible IPR infringements"
8. "Drive key partnerships to highlight Nokia's superior strength in the market, keeping things in perspective."
10. "Highlight potential weaknesses of the iPhone"
This whole report shows exactly why Nokia failed.
To my mind the key insight from the presentation is this sentence:
“The 1% volume share target could translate into 4% value share, taking ~ 30% share of the >300 € price Band”
That’s Apple’s superpower in a nutshell - get the majority of the profit in the market, while everyone else battles each over over market share (and earn low margins in the process).
The iPod applied the same strategy. When it launched it only worked on Macs with a FireWire port, meaning <10% of the personal computer market.
Also less space than a Nomad.
The killer feature of the iPod was the iTunes music store. Everybody was sick of the hoops the companies made you jump through to buy songs. Singles were basically out of fashion thanks to the domination of the CD, but most bands only released one or two good songs on a CD meaning each song cost like $5 and you had to rip it yourself and transfer it to whatever device you had, which was a lot of work. Apple realized people would buy a ton of music if you cut out the bullshit and price it reasonably, a strategy that had been previously untried in the market and no doubt caused a lot of CEO heartburn.
I remember the normal engineering mood inside Symbian, Motorola and Sony Ericsson when the iPhone launched.
We immediately knew we were toast. We used to say that the iphone made us irrelevant and android made us redundant.
I think we can see the same thing happening today.
BYD+CATL are the new iphone and other manufacturers are Symbian, Motorola and Sony Ericsson
VW, Toyota and friends cannot change fast enough. They should have started with big battery investments 10-15y ago and RnDing then, not now when Market is flooded.
In what way is a BYD a completely different/revolutionary product compared to, say a KIA or Volvo EV? This comparison seems a bit strange tbh.
Sure they are more nimble and have higher margins. But the products they make are still just copies of what those other dinosaurs are making. And for a car I'm still very reluctant to buy a Chinese one. Politics aside, what I'm buying is a 5-10 year long service experience where the Volvo dealer is 1km away and where the BYD service location is I'm honestly not sure. It might be around the corner too, but I don't know because it hasn't been there for 50 years yet. It's a much harder market to break into. The easiest way to do it is probably the way Geely and SAIC did it - Buy a brand and/or service network.
I don't see the comparison. BYD is a decent car for an impressive price, but they're ... just cars. The iPhone wasn't "just a phone" that was cheaper than its contemporaries and a little better in very specific areas, it was a complete overhaul of the entire market.
You can look at a BYD and a Nissan and make a decision based on minor trade-offs between different aspects of the car. You couldn't do the same between iPhone and a Sony Ericsson.
>BYD is a decent car for an impressive price, but they're ... just cars.
BYD car division has multiple departments doing independent R&D and releasing independent lines. They were first with 360° tank turn and now a jumping supercar. They are trying hard to deliver things others like Musk keep promising down the line.
Cool I am probably never going to buy a jumping supercar so that's not very relevant. The iPhone and the smartphone in general wasn't a revolution because it was a super cool R&D project that would cost ridiculous amounts of money to buy; it was a revolution because everyone bought one. If even as much as 10% of the market buys a "jumping supercar" (which would be absolutely INSANE) then there's still plenty of space in the market for traditional cars. There isn't plenty space in the market for "traditional phones" anymore.
I somehow fail to see this as the most I want in a car is confort and perhaps space not screen time.
A killer feature for a car would be FSD but that’s not an “iPhone” thing.
BYD and the other Chinese manage to sell good EVs for great prices but I don’t see them irreplaceable like the iPhone.
Maybe they are the new Toyota but not the iPhone.
Same goes with Tesla though it’s more complicated because Tesla keeps promising FSD.
The iPhone didn’t promise anything. It just delivered.
IMO it's shocking that this _did not_ happen in cars, in past tense.
Model S launched 12 years ago. Apple replaced Nokia in 4 years. Model Y was the second best selling car worldwide, supposedly, after a Toyota and followed by a Toyota. Tesla has market share of about 2.3% globally and stays out of top 10.
iPhone became de facto definition of a phone. In less than 5 years from nothing. Tesla is... not that.
Nah.
These companies do not have nearly the same value proposition relative their intended market as Apple did.
BYD or Tesla are still just cars. An iPhone completely changed what a "phone" was. And did so in a way that required the rest of the industry to take time to replicate.
BYD is more just Toyota. Which is awesome for BYD. I realize that a lot of people would like to be "just" Toyota in their market. But it's not the same as being Apple.
Tesla? Yeah, they're nothing like Apple. Maybe if they delivered on FSD? But even then, it's not like Apple. Apple made something that no one else was working on as more than maybe a research project. Tesla FSD development doesn't have the same advantage. Everyone is working on FSD. Since we're American, we're hoping Tesla, (or one of the big three), gets it first. But that's more of a hope, not necessarily the way things will pan out.
That's the essential difference between Tesla and Apple. Apple doesn't talk a big game. In fact, they famously and frustratingly say nothing at all. They just deliver. Tesla is still talking about FSD.
> Since we're American, we're hoping Tesla, (or one of the big three), gets it first. But that's more of a hope, not necessarily the way things will pan out.
And in the FSD space I don’t think there is much first mover advantage anyway. The iPhone came out of left field. The path to FSD has been highly iterative with many steps taken by a bunch of different players.
Even if Tesla gets FSD first, it won’t be much longer before others get it to and they’ll all be roughly the same interface and feature set.
iPhone was significantly different than what was there before and as you or somebody said, nobody else was working on anything similar. It was a different business model—one that took away substantial power from the cell phone carriers and turned the phone into a software platform on par with a regular computer. It turned carriers into dumb pipes and they hated that!
FSD doesn’t really change the fundamental business model of any car manufacturers out there. It’s just another feature for the same familiar players to sell.
What would throw a wrench in the existing crop of manufacturers would be street legal FSD cars you could order on Amazon for a fraction of the cost or something. Ones made by the same crew that make all the other random flee market brands sold there. Or maybe if the whole market switched to on-demand pay per mile service with a completely vertically integrated company—but even then I don’t think that upsets the apple cart too much.
By borrowing your analogy, the general sentiment with the iPhone was excitement and interest when it came out. I just don't see it in the folks around me regarding EVs (price is high, charging is pain). Yes, it's the future, but a future that is way ahead. We aren't even at the point where those old "devices" start to show their age. I'd say Symbians and Ericssons still have time.
People also forget that the iPhone wasn't what we have today - it was an iPod that made phone calls, and that alone was enough "for most people" - huge swaths of people had iPods and a cell phone so even if it had been mediocre it would have succeeded.
It not being mediocre is how it ate the world.
I wouldn't count Toyota out. Their mega battery plant in North Carolina is coming online this year, and the biggest drag on their current EV/PHEV lineup is the batteries. New EV/PHEV models are on the way, and frankly if they just update what they have with better batteries they will be absolutely phenomenal because they are currently great to drive and run extremely well despite lackluster battery range.
For the PHEVs yes they are battery constrained. They have great products and a ton of demand and difficulty keeping up manufacturing due to limited batteries.
For their EV, they have yet to make something that is competitive. Their EV is slow to charge, slow to accelerate, somewhat short in range, and quite expensive before they started adding—-in some cases five figure—-incentives to move them. It even had a recall for the wheels coming off.
Are we seeing the same thing, though?
The average consumer replaces their smartphone about every 3 years (at least in the western world, places like India are on an even shorter cycle). Additionally, the global average price of a smartphone is about 400 USD. That's a much faster moving market than cars and the investment is much lower.
BYD is very impressive, but I wouldn't look at the situation as the same.
In developing countries, from what I could find, the ASP is around $160
I disagree. Cars are much more entrenched status symbols than phones were back then. A Porsche is a Porsche, a truck to show you're manly and outdoorsy is a truck.
People will continue to buy brands they know and whose marketing aligns with how they see themselves. Not everyone will switch to BEVs for a variety of reasons - cost, lack of infrastructure, or hell, even contrarianism.
VW, Renault, Nissan, Stellantis, Toyota can change fast enough before BEVs are the only thing on the market. All of them already have models in various sizes (e.g. Renault make very good and adequate cheap EVs nobody else comes even close to in the big EU markets) and varying quality. It's easier for VW to improve their EVs than it is for Tesla to launder their image.
Also keep in mind that the iPhone was far from starting at zero: they did not so much enter the phone market as a newcomer as they did pull the phone market into the existing and utterly dominated iPod market. Dominated so much that I don't even dare calling it the mp3 player market.
> BYD+CATL
Unless these two companies change the laws of physics in order to exponentially improve the overall performance of batteries (exponentially faster charging times, from hours to 5-10 minutes, exponentially cheaper batteries that would last longer) then, no, they won't be the next Apple. Just ask VW, they almost bet it all on EVs and now they're already with one foot in the grave because of that.
They bet the farm on hiding diesel emissions before that.
> Just ask VW, they almost bet it all on EVs and now they're already with one foot in the grave because of that.
Not without some coercion. It was part of the settlement from when they cheated on emissions tests by running the engines more efficiently if the steering angle was touched or the non-drive wheels moved.
What about Hyundai? They also went big on EVs and now are competing even in China
I worked at SE when the iPhone was released and that is not how I remember it. :) The mood was more like "lol, it has no buttons!", "too expensive!" and "it can't work without a stylus!" I think many seriously misjudged how "cool" Apple was back then (and consequently how much they'd be willing to spend on status symbols) and how good a snappy touch ui could be.
Lund working on feature phones! My job was writing and managing test suites for verifying the J2ME implementation. It was a top secret collaboration with Motorola. They took QA work extremely seriously and bugs could delay major launches. Unfortunately for them, "rock solid J2ME" wasn't really what customers were after. :)
A lot of people made the same mistake. They didn't understand -- simply couldn't understand for some reason -- that the imperfect iPhone that was launched in 2007 was the worst one that would ever exist.
You see this attitude a lot today. ("AI? LOL, it can't even count the letters in 'Strawberry.'") People have a mental block when it comes to understanding that the value of something new doesn't matter as much as its time derivative.
Not related to phone companies, but some software companies were in denial about it. I remember purchasing one of the first HTC/Android smartphone, and I told my boss at the time that my new cheap phone could replace all the applications of the company but cheaper, more convenient, in my pocket, and without a computer. He made fun of me and laughed. I knew Java pretty well and whipped up a few POCs to see by myself if we were really doomed, but I didn't told anyone about it. In less than 2 weeks I replace the whole company with 2 or 3 applications with crappy UIs. I quit in less than a month and the company obviously closed soon after that because that was the only sensible thing to do.
Can you elaborate?
My memory is that Apple _charged_ developers to make apps :)
Do you think non-SW engineering types in e.g. Nokia and Sony Ericsson also immediately knew?
I remember a lot of delusion the first year that then turned into bitterness - but I don't have the inside perspective, just hints of it from my then position at a software supplier to both.
As a developer, I remember a few bosses that thought "who needs a stupid phone? no one will buy that" except that Android could already do most of what Windows was capable of, and the bonus was that the SDK was free and Java was an easy language.
They were stuck in their post-Windows 95 world, and did not understand that multimedia CD-ROMs were clunky and dying.
Stuff like this goes back YEARS.
Back in the days of the Bell System, the upper management at AT&T believed that it was going to be circuit-switched forever, even as Bell Labs was building packet-switched audio networks and it was becoming clear that packet-switching was a vastly more efficient solution to moving large amounts of mixed data around at a time. The development of efficient switching networks [0] was fundamentally resulting in continually building bigger networks that took up more space -- it was the Strowger step-by-step problem all over again. Moving to a packet-switched system meant that you could have an infinite number of "circuits" so long as you kept track of the paths taken.
But even as AT&T Long Lines implemented this, upper AT&T management was firm that the fundamental design of the network was not to shuffle packets around but instead to connect point A and point B with services on either end for the subscriber.
Even when they did eventually try to accept the packet-switched system, ISDN was too big and bulky, too slow for anything practical, and by the time it was useful, Ethernet/IP came along and ate its lunch.
[0] https://en.wikipedia.org/wiki/Nonblocking_minimal_spanning_s...
> as likely the black rectangle would be developed by someone eventually, phone carcinization
Relevant: LG Prada (2006) https://en.wikipedia.org/wiki/LG_Prada
I was there as this played out. Nokia had a lot of good software and software engineers but not the management structure to do anything good with that.
Nokia was huge as an organization and parts of that organization recognized the threat early on. The problem was at the board and executive level. These people had a blind spot for software. They thought they were still in the electronics business. Lots of people with an electronics and radio background. Not a lot of people with software competence. And they had bought into the notion that Symbian was going to magically fix all their problems.
A lot of effort was spent on looking for other solutions. And one of the things that was good (Linux) around 2005 was actually quite close to displacing Symbian as the key future proof replacement for their legacy platforms. Symbian was just rolling out for a few years and they had made a big investment in that. And management (those same people with a huge blind spot for software) backed the wrong horse.
Linux never really died in Nokia but it wasn't allowed to prosper either. Devices were cancelled or repurposed for Symbian. This happened to the N8, for example. By the time they switched to windows phone, they actually had two Linux platforms (Meego and Meltemi) and an Android phone in the works as well. Meego had one last product phone launch and the team and platform were killed in the same week. Any devices for that platform were labeled as developer phones. Nokia never marketed them as a consumer phone. Meltemi never saw any product launch at all; it was aimed at feature phones. Both were good ideas but poorly executed. Nokia killed them along with Symbian in order to back windows phone. Classic baby and bathwater situation.
And MS ended up killing the one Nokia Android phone that was launched shortly before they acquired the whole phone division. Kind of a desperate/ballsy move. I suspect Nokia did this as a stick to ensure MS followed through with the acquisition. That was their "oh we could just switch from windows phone to Android unless.. " move. Nokia was at point the only OEM that still believed in Windows Phone.
MS killed the whole division shortly after Satya Nadella took over and was sorting out the mess left by Steve Ballmer. The iphone was solidly in charge by then and the rest of the market was Android. Courtesy of lots of Linux contributions by the Meego and Maemo team.