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Abridged version
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Reference no. 9-721-414
Published by: Harvard Business Publishing
Originally published in: 2020
Version: 12 November 2020

Abstract

In 2013, Nokia sold its Device and Services business to Microsoft for EUR5.4 billion. For decades Nokia had led the telecommunications (telecom) industry in handsets and networking. By the late 2000s, however, Nokia's position as market leader in mobile devices was threatened by competition from new lower-cost Asian manufacturers. Apple's 2007 release of its iPhone established an entire new category - the smartphone - immediately popular with users. What were Nokia's missteps over the years? What should Nokia have done differently?

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Abstract

In 2013, Nokia sold its Device and Services business to Microsoft for EUR5.4 billion. For decades Nokia had led the telecommunications (telecom) industry in handsets and networking. By the late 2000s, however, Nokia's position as market leader in mobile devices was threatened by competition from new lower-cost Asian manufacturers. Apple's 2007 release of its iPhone established an entire new category - the smartphone - immediately popular with users. What were Nokia's missteps over the years? What should Nokia have done differently?

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