Nokia is a Finnish brand that started in a place called Nokia in Finland in 1865.

In those times,
they were producing paper. When the 1960s came around, they started teaming with some
rubber and cable companies which caused them to get more popular and be more profitable.

When they started to enter the mobile phone industry, it was 1981. At that time, they were just
a Finnish mobile company, not that popular. But then they started making some
improvements and they were known everywhere, they were working in many industries like
paper, mobile phones, consumer electronics (laptops and phones and other electronics) and
rubber too. They even had a power division (power production). With maintaining all of these
at once, they couldn’t focus on improving and making much profit from one thing. So they
started wobbling. They were a big company with a lot of sales but weren’t making any profit.
So they did the obvious, they stopped working in some industries to focus on specific
industries that are the most profitable. They stopped their rubber business in total and they
decreased the amount of time and focus they are spending on the consumers’ electronics
business and started putting more effort and focus on cellphones which seemed the most
profitable at that point in time.

Nokia invested a lot of money in research about producing mobiles and put a lot of effort into
it. They made a lot of profit from these because they made really good phones with unique
and new designs and were attracting the buyers’ attention hugely. They were DOMINATING
the 4 years from 1991 to 1995. They were selling more than double what they did before, their
market value skyrocketed to more than 10 times more than its market value before. When
1998 came around, NOKIA was the best-selling mobile phone company in the WORLD! Even
for the next decade, NOKIA dominated the cell phone industry.

The best-selling phone of all time is a NOKIA phone. This proves how popular NOKIA was. But
that’s not it, the second best-selling phone of all time is also NOKIA’s, and according to my
resources, this is a list of the best-selling phones of all time:
As we can see, NOKIA was dominating the cell phone industry. Every aspect of their business
was the most in the year 2008 when they sold about 472 million units and made around 50000
billion euros!

In the next few years, NOKIA declined from making 8000 billion dollars in profit to paying
debt. Till the year 2008, NOKIA were producing normal brick cell phones and phone with a
number pad below the screen, not our normal smartphones, so those phone that NOKIA was
selling were becoming outdated. Smartphones were starting to get preferred by people but
companies had to spend a lot of money on research and production of smartphones. Apple
released its first iPhone in 2007 but in that year, NOKIA sold 50% of all phones sold and Apple
sold only 3%.

But Apple’s 2nd iPhone sold better than their first one and their third sold better than that,
this trend kept favouring Apple more and more. The main reason people were choosing Apple
over NOKIA was because of its operating system or OS. Apple’s smartphones revolved around
the Apple-made OS; iOS and NOKIA had Symbian as their OS and iOS was simply better than
Symbian. So NOKIA’s sales and their market value went down rapidly.

The external factors that caused the decline of NOKIA were these:

1. Economic Factors: The economy of NOKIA was decreasing a lot because of its
competition and people were not buying NOKIA’s phones anymore because of its OS
getting worse. Its market value and its sales decreased a lot.

2. Technological Factors: NOKIA’s technology was falling behind as its OS was not
meeting the world’s evolving requirements, so NOKIA fell behind.

3. Social Factors: Users of NOKIA were not pleased with their experiences when
compared to other companies so people were not preferring NOKIA.

4. Competition: NOKIA was not able to emerge victorious among all of its competition
because of its competition having better OS and NOKIA was only concentrating on its
hardware, and not its OS, and in smartphones, OS is more important than the phone’s
hardware. It’s competition (Apple or Android or etc) was concentrating more on the
phone’s OS and not on its hardware, so NOKIA fell behind because of its competition
and its sales and market value declined.