What is the Reason for the Failure of Nokia in India?


In the pre-smartphone world, if there was one company that enjoyed unparalleled dominance in the Indian market, it was Nokia. From the late ‘90s itself, Nokia became the leading smartphone manufacturing brand and by the year 2007, it had captured nearly 50% of the mobile phone market share.

However, it did not take much time for the company to lose all of its aura. After 2007, with the launch of the iPhone and subsequent Android phones, its shares dropped to below 5%. Let us take a quick look as to why Nokia couldn’t sustain itself in the market.

No technology upgrades

Since the launch of the iPhones in 2007, the world of mobile phones witnessed an insane change in its technologies. As companies like Samsung and LG started to come out with smartphones, Nokia stuck to producing the old versions of the phones. With time, smartphones got better and more affordable, and that was when the relevance of Nokia phones started going down. People wanted the advanced smartphones and Nokia, failing to provide them, could not keep its name up in the market.

No software updates

The world of iOS and Android OS attracted millions of new customers. Nokia, being reluctant to associate with Android OS, eventually alienated a majority of its customers that ended up shifting to either Apple phones or other Android smartphones. A Nokia mobile was no longer what people needed or wanted.

Association with Microsoft

In its quest of standing out of the pack, Nokia decided to associate with Microsoft instead of the already popular Android OS or iOS. This did not resonate with the customers at all; neither did they find their new niche. It seemed like it was already too late for them to adjust to the extremely dynamic nature of the market and its demands. 

No change of perception

Nokia phones were etched into the minds of people as the original “non-smart” phones. Although quite late, even when it started producing smartphones, it failed to change its perception in the market.

Competition from Chinese smartphone brands

Chinese smartphone brands like Huawei and Vivo started to rapidly conquer the Indian smartphone market with their cheap yet sophisticated smartphones. They offered great RAM, splendid front and rear cameras and top-quality chipsets, to make their phones flashy and attractive. This made it even difficult for Nokia.

Lack of uniqueness

When Nokia was finally taken over by Microsoft, it did launch some smartphones with good hardware. But unfortunately, all of that was already available in the market and from brands people had already started trusting a lot more.

Overestimation of their brand

Once the leading manufacturer of mobile phones, Nokia could not adjust to the fact that they were becoming irrelevant with time. Even when they finally came up with smartphones, the prices of those models were too high for people who did not care about the brand name anymore.

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