The Curtain Falls on Nokia Smartphones: From Feature Phone King to the End of an Era
The Curtain Falls on Nokia Smartphones: From Feature Phone King to the End of an EraThe beginning of 2025 saw a quiet update on HMD Global's website, marking the discontinuation of the Nokia XR21. This phone became the last Nokia-branded smartphone on HMD Global's website, officially signaling the end of the Nokia smartphone era
The Curtain Falls on Nokia Smartphones: From Feature Phone King to the End of an Era
The beginning of 2025 saw a quiet update on HMD Global's website, marking the discontinuation of the Nokia XR21. This phone became the last Nokia-branded smartphone on HMD Global's website, officially signaling the end of the Nokia smartphone era. While HMD Global will continue selling Nokia-branded feature phones, and their brand licensing agreement with Nokia expires in March 2026, all signs point to the definitive end of Nokia smartphones. This article will revisit Nokia's glorious history and trace its fall in the smartphone era.
Phase 1: Reigning Supreme in the Feature Phone Era
Nokia's dominance in the feature phone era was undisputed. In January 2024, Visual Capitalist's statistics on the 15 best-selling phones of all time showed Nokia and Apple occupying the top ten spots. The Nokia 1100 topped the list with over 250 million units sold in six years, followed closely by the Nokia 1110 with 248 million units sold. These figures clearly demonstrate Nokia's phenomenal success in the feature phone era, boasting an astonishing market share and brand influence. However, as Visual Capitalist pointed out, Nokia's and Apple's fates diverged sharply over the past decade. Apple successfully transitioned to smartphones, becoming an industry leader, while Nokia's failure to adapt to the changes of the smartphone era led to its rapid decline.
Phase 2: The Partnership with Microsoft and its Failure
Faced with the onslaught of competitors like Apple, Samsung, and Google, and hampered by the slow development of its MeeGo operating system, Nokia chose to partner with Microsoft, hoping to break into the smartphone market. In February 2011, Nokia announced a strategic partnership with Microsoft, abandoning Symbian and MeeGo in favor of Windows Phone. Nokia subsequently launched a large number of Lumia smartphones running Windows Phone, forging a close relationship with Microsoft. In September 2013, Microsoft acquired Nokia's Devices & Services division to accelerate the development of the Windows Phone ecosystem.
The Lumia series did gain some market recognition, and many users still fondly remember them. However, the Nokia-Microsoft partnership ultimately failed. In 2015, Microsoft's new CEO, Satya Nadella, announced the closure of its mobile division, a fatal blow to both Nokia and Windows Phone. For Microsoft, the failure of Windows Phone wasn't a core business loss, but for Nokia, it was a devastating defeat after a massive investment. Although Nadella admitted in 2023 that abandoning Windows Phone was a mistake, it couldn't change Nokia's smartphone destiny. The reasons for Windows Phone's failure are numerous, but Nokia's strategic missteps during its partnership with Microsoft and the intense market competition played significant roles, ultimately leading to Nokia's swift decline in the smartphone sector. In 2016, Microsoft sold Nokia's feature phone business to HMD Global and Foxconn, marking the definitive end of the Nokia-Microsoft partnership.
Phase 3: HMD Global Era: Struggle and End
In 2016, HMD Global obtained the Nokia brand license to manufacture and sell Nokia-branded phones and tablets. Initially, HMD Global launched some well-received Nokia phones, such as the Nokia X6, 6, 7, 8, and 9 series, but this success was short-lived. Due to several factors, including strategic planning and the failure to adapt to market changes, Nokia phones under HMD Global primarily focused on the low-end market and feature phones, struggling to compete with rivals in the high-end segment. While HMD Global attempted to attract Nokia fans by replicating classic models, this wasn't enough to sustain Nokia's market competitiveness in the long term.
Starting in 2024, HMD Global noticeably accelerated its "de-Nokiafication" process: its social media accounts were renamed, and Nokia-branded smartphones were removed from its website. Finally, with the discontinuation of the Nokia XR21, no Nokia smartphones remain on HMD Global's website. This action marks the complete end of the Nokia smartphone era.
Nokia's Transformation and Success
Despite the decline of its phone business, Nokia as a company did not perish. In fact, Nokia achieved remarkable success in other areas. The Q3 2024 financial report showed Nokia's quarterly revenue reaching 4.32 billion (approximately RMB 32.4 billion), with net profit increasing by 31.58% year-on-year. Nokia's main revenue sources include telecom equipment supply, business operations, and patent licensing. As one of the world's leading telecom equipment suppliers, Nokia leveraged its extensive experience and technical expertise in the communications industry to secure a significant market share. Furthermore, Nokia holds a vast portfolio of patents covering various communication technologies from 2G to 5G, generating considerable patent licensing revenue.
Conclusion: Reflections on Nokia
Nokia's rise and fall offers valuable lessons. The once-dominant feature phone king ultimately fell in the smartphone era, a consequence of its failure to adapt to market changes and seize opportunities. Although Nokia succeeded in other areas, its failure in the smartphone sector remains regrettable. Nokia's experience reminds us that companies must constantly innovate and adapt to market changes to survive in intense competition. The future of Nokia-branded phones remains uncertain after HMD Global's license expires. Perhaps the era of Nokia phones has truly ended, but its historical position and influence in the communications industry will be forever etched in history. Nokia's journey also prompts reflection: would a different path have yielded a different outcome? This is unanswerable, but Nokia's rise and fall provides profound insights into corporate development strategies.
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