Nokia, once the world’s leading mobile phone company, has made a significant archive of corporate assets available through a website curated by Finland’s Aalto University, the Nokia Design Archive. This collection provides valuable insight into how the company operated and its assessment of Apple’s iPhone launch in 2007.
A confidential report from that time captures what Nokia thought about the iPhone’s impact on the market. The company believed the iPhone’s high price would deter consumers, but ultimately, cost was not a major factor in the device’s success. Nokia executives were also concerned about the iPhone’s user interface, which they thought would lead to erosion of their own UI.
However, the report highlights several key areas where Nokia underestimated Apple: the innovative user experience, protected by over 200 patents; Apple’s “cool factor,” which delivered a full-fledged internet experience in its phone; and the impact on competitors like Sony Ericsson and RIM. Nokia predicted that these factors would lead to Apple’s success in the market.
The report also reveals that Nokia struggled to respond to the iPhone’s threat, failing to develop an effective user interface and operating system strategy. This failure ultimately contributed to the company’s decline.
Today, Apple remains a dominant force in the smartphone industry, with its users willing to invest in high-end devices due to the excellent user experience it provides. The report from 2007 serves as a reminder of how Nokia underestimated the iPhone’s potential and failed to adapt to the changing market landscape.
Source: https://www.computerworld.com/article/3803214/what-nokia-was-thinking-when-apple-introduced-iphone-in-2007.html