The Evolution of the Nokia Brand: from Market Leader to Memory Lane

Nokia was and still is one of the most well-known brand names when it comes to mobile phones, but its connotations have changed. When Nokia began producing mobile phones in the 1990s, the brand quickly took the lead in the market. Today, it is mostly a nostalgic brand—a name that evokes memories of simpler phones with one iconic ringtone, Snake, and an indestructible casing. How did this perception change so drastically, and what was the impact on the brand’s value?

In this article, you will read about three important marketing lessons from practice, such as:

The overestimation of the power of the brand, the current market position, and the self-developed product.
Poor timing in responding to changing demand.
The lack of a good product-market fit.

The Rise to Fame

The Nokia brand has a long history. It originally started in 1865 as a wood pulp mill, later expanding into rubber products. However, it truly made a name for itself at the end of the last century when it developed a digital telephone exchange. In 1996, Nokia created its first smartphone, and by 1998, it was the market leader with a global market share of 40% and even 70% in the United Kingdom. The brand became so ubiquitous that the distinctive Nokia ringtone was estimated to be heard 1.8 billion times a day worldwide. There were even reports of birds mimicking the tones. In 2007, Nokia’s brand value was estimated at €32.3 billion, making it the most valuable European brand at the time.

New Competitors and Acquisition

But then… competition gained momentum. In 2008, the first iPhone was launched, and the Android system became the new standard. Within a few years, Samsung and Apple took over the top positions. Nokia failed to adapt to the new developments. In an attempt to regain its market share, Nokia partnered with Microsoft. The Nokia Lumia, featuring a Windows operating system, was introduced in various price ranges and with innovations such as wireless charging. This brought some stability, after which Nokia decided to focus on new markets. The Nokia Lumia was transferred to Microsoft, which soon decided to drop the Nokia brand name. From 2015 to 2017, Nokia was no longer found on smartphones. In 2017, Windows relinquished its rights to the brand name, and Nokia returned to the market. This time, it was released by HMD Global, a Finnish company consisting mainly of former Nokia employees. The initial launch was promising, but after a few years, this attempt also faltered. Since 2024, the Nokia name is no longer on HMD phones, and the license for the brand name will likely be released

What Went Wrong?

Nokia was too slow to recognize the changing market. The demand for smartphones exploded, causing their sales to rise, while their market share was declining. This allowed the company to continue producing for a few more years while failing to notice significant shifts in the industry.

Late response to market demands: The App Store launched in 2008, meeting the need for easily finding and downloading apps. The Play Store (then Android Market) quickly followed, while Nokia’s response, the Ovi Store, came a year later. Not only was it late, but it was also far more complicated for app developers.
Failure to follow industry trends: While competitors embraced the Android operating system, Nokia held onto its own system, Symbian.
Declining brand perception: Slowly but surely, Nokia was no longer seen as an innovative leader, and the company failed to turn this around.

The Future of the Nokia Brand Name

HMD Global’s license to use the Nokia brand name for phones is expected to expire and will then be available again. In theory, another company could acquire the rights and reintroduce Nokia smartphones. However, this seems unlikely. The brand’s value has declined significantly in recent years, and in a market dominated by Apple and Samsung, nostalgia alone is not enough to make a comeback. The Nokia company name will continue to exist in telecom infrastructure, but as a consumer brand, it is unlikely ever to regain its former impact.