The entertaining history related to Apple that we explored last week carries on. A confidential internal presentation discovered in recently released archives indicates that at least nine members within Nokia recognized the significant challenge presented by the iPhone just one day after its launch.
Regrettably, the senior leaders did not heed their warnings, and within merely seven years, Nokia transitioned from leading the smartphone market to completely exiting it…
As we previously mentioned, there exists a strong tendency to believe that a currently dominant company will maintain its position indefinitely.
On the eve of the iPhone’s release, Nokia held approximately a 50% share of the mobile phone market, far ahead of any competitors. Not only was the company financially strong, but Nokia was also perceived as the trendiest and most stylish brand at that time, the one that teens aspired to carry.
However, the organization’s senior executives failed to grasp that the iPhone’s launch changed the game entirely. They underestimated the shift towards keyboard-less smartphones as the future, believing that Apple would reshape the market while Nokia ended up fading away. In just seven years, Nokia left the smartphone sector behind.
The situation could have unfolded quite differently had the organization chosen to listen to the insights provided by a group of nine employees who crafted an internal presentation the day after the iPhone debuted.
In the executive summary highlighted by Fahad X (via Daring Fireball), the team stated:
Apple iPhone is a serious high-end contender.
The iPhone’s touch screen interface might establish a new standard of state-of-the-art technology, introducing a user interface that promises unmatched ease-of-use along with cool, seamlessly integrated internet applications. Nokia must develop a touch interface to respond effectively.
This new user interface could redefine expectations for a superior user experience across the entire market – noted as “visually stunning and incredibly responsive.” UI has been a significant strength for Nokia, and it may become the most formidable threat posed by the iPhone.
iPhone will likely capture the attention of the US media’s cool factor. If Apple achieves this goal at the proposed price point, it will establish a new high-end market.
John Gruber observes that while this team didn’t hit every nail on the head – notably underestimating the importance of web access and how Apple would innovate mobile apps – the reality remains that had Nokia’s board listened, it might still be a player in the smartphone industry today.
Image: Nokia
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