Critical Reasons Why Nokia Suffered Decline

This Thursday, iSuppli revealed that Nokia has finally lost the position of largest mobile handset maker in the world to Samsung. Earlier this morning, another bad news struck the Finnish handset maker when it was revealed that the quality of its handsets have fallen below A grade.

Nokia has held the crown of the biggest handset maker since past 14 years, but in the past few recent years, the company has seen nothing but decline in profits and market share. There are a number of different reasons for why Nokia has failed to move along with the current handset makers.

One of the first reasons why Nokia has suffered is because Samsung, its main competitor chose Android as its main operating system. While Android has done a great job for Samsung, Windows on the other hand hasn’t been so good for Nokia so far. Samsung was clever to introduce various phones on different operating systems, it brought Windows, Bada OS and Android powered sets to consumers in order to give them a variety. Nokia on the other hand kept betting on its in house Symbian operating system and then moved to Windows, which was not quite successful for the company.

Another reason why Nokia is suffering today is because the company lazed off and did not move along with the technology. The company which was responsible for coming up with the first ever Smartphone, is now struggling with bringing a good one to the public. This is because while other companies shifted their focus on building more and more Smartphones, Nokia kept working on its feature friendly phones.

When Apple first introduced the iPhone, it started a completely new kind of demand amongst the consumers, one which Nokia failed to capture and sort out in time. If Nokia was fast enough at that time and would have released a Smartphone with application store, things might not be looking so bad for it now. Failure to move along with the demands of public has really cost Nokia a fortune and its position as the market leader.  Now only time will tell if its partnership with Microsoft will bring any good to the company.