Home » today » Business » “Why Nokia, the World’s Largest Mobile Phone Manufacturer, Declined: An Analysis by TextQuery” URL: https://textquery.app/2024/02/06/nokia-made-too-many-phones/

“Why Nokia, the World’s Largest Mobile Phone Manufacturer, Declined: An Analysis by TextQuery” URL: https://textquery.app/2024/02/06/nokia-made-too-many-phones/

by Nicolas Nova

Nokia, a telecommunications terminal manufacturer headquartered in Finland, was the world’s largest mobile phone manufacturer until 2011. However, after that, the company slumped and was acquired by Microsoft in 2013, and at the time of writing, its main business is manufacturing communication infrastructure equipment. TextQuery, which develops communication analysis software, explains on its official blog why Nokia, the world’s largest mobile phone manufacturer, has declined.

Nokia Made Too Many Phones
https://textquery.app/2024/02/06/nokia-made-too-many-phones/

Nokia was founded in 1865 by Fredrik Idestam, a Finnish-Swedish mining engineer. When Nokia was first established, it operated a pulp mill used in paper manufacturing, but as its business expanded, it expanded to include rubber and cable factories, as well as manufacturing products related to power infrastructure.

Nokia entered the telecommunications infrastructure business in the 1970s, more than 100 years after its founding, and originally manufactured equipment for the Finnish Defense Forces, producing military communications equipment, radios, telephone exchanges, etc. Now you can.


In the 1980s, Nokia entered the computer market and started selling minicomputers.MikroMikkoand IBM-compatible PCs. In 1982, Nokia launched its first mobile phone, the Mobira Senator. However, due to too much business expansion, Nokia fell into a management crisis, and in the early 1990s Nokia decided to undergo a large-scale business restructuring. As a result, Nokia’s business was focused on mobile phones and communications infrastructure, and it withdrew from manufacturing monitors and PCs.

In 1998, Nokia gained the top share of the global mobile phone market and maintained this position until the mid-2000s. Although Nokia focused its business on mobile phones and communications infrastructure, the idea of ​​market segmentation was deeply rooted within Nokia, which had previously engaged in a wide range of businesses, manufacturing everything from toilet paper to tires. With the spread of mobile phones accelerating worldwide in the 2000s, and growth expected in emerging markets, Nokia aims to expand market share and improve customer satisfaction by rolling out a diverse product lineup. I did. In 2007, Nokia’s market share reached over 40%.

by Joegoau Goa

This was especially true in 2005, when Nokia launched over 50 new models in that year alone. This is more than Apple has released in the 16 years since the iPhone was introduced. Nokia (PDF file)2005 Annual Report“For Nokia, a competitive mobile product portfolio is defined as having attractive features, functionality and design, supported by the Nokia brand, quality and a competitive cost structure, and capable of meeting all major consumer needs.” “This means offering a broad and balanced range of commercially attractive mobile devices across consumer segments and price points.”

Nokia has created a large number of models that specialize in one purpose, such as business, music, and camera use. Displays ranged from 1-bit monochrome displays to 24-bit AMOLED displays.

For example, the Nokia 7600 released in 2003 features a unique leaf-like design, and the cover is replaceable. It is equipped with a 640 x 680 pixel digital camera that can also shoot videos.

by Andrew Currie

Nokia N-Gage is a gaming-specific mobile phone released in 2003.The game softwaremultimedia cardIt was released in 2007, and titles such as “King of Fighters,” “Sonic,” “Tomb Raider,” and “Puzzle Bobble” have been released.

by Association WDA

The Nokia 7280, released in 2004, is a palm-sized mobile phone with a “lipstick” appearance. Use the scroll wheel instead of the keypad.

by father

The Nokia N90 was a model that appeared in 2005, and was equipped with a rotating camera module, giving it the feel of a handy camera.

by Douglas Porter

Although these experimental designs were innovative in the mobile phone market at the time, practical issues were also pointed out, such as an inconsistent user experience and limited versatility. Nokia’s pursuit of design diversity meant that it struggled to build a platform that would meet the needs of a large number of users.

Then, when Apple introduced the iPhone in 2007 and Google introduced Android in 2008, the smartphone market changed rapidly. Nokia was unable to adapt to the major changes in the spread of touchscreen interfaces and the app market, and in 2011, Samsung overtook Nokia in smartphone shipments, and from there Nokia’s share declined rapidly, and in 2014 Microsoft This led to the company’s mobile phone division being acquired by the company.

As a result, Nokia’s strategy of over-diversifying its products led to a dispersion of development resources and an inconsistent user experience. It can be said that Nokia’s failure to foresee market changes and make appropriate strategic changes led to Nokia’s decline.

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2024-03-17 11:00:00
#Nokia #worlds #largest #mobile #phone #manufacturer #fall

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