The Finnish telecommunication company Nokia, is struggling because of the competition in the smart phone market. Company has announced a  €1.3bn loss in the first quarter of 2012. The biggest reason of their loss is the excessive competition in the market. After splendid enter of Samsung with Galaxy smart phone, competition between market leader-Apple iPhone and Samsung Galaxy extremely increased the competition in smart phone market. To satisfy the expectations in that kind of environment, Nokia published their last smart phone, Lumia. However, Lumia failed to satisfactions, and the number of sales stayed way behind the expectations. In many markets, Lumia, Nokia’s smart phone, called as a “failure”.

Stephen Elop, Nokia’s chief executive made a comment about the environment of the market. He said that, the business was working its way through a significant company transition in an industry environment that continued to evolve and shift quickly. In order to adapt to rapid change in smart phone industry, Nokia changed their software system in their smart phone products. For example, for Lumia, company quit using their old operating system, Symbian and chose unused Windows Phone software, owned by Microsoft. That sudden change in their software product made a huge fall on the Nokia’s revenues. Clearly, we can say that even after the merger both companies couldn’t succeed and closed the first quarter of 2012 with loss,

The Smartphone Shakeout: Time Is Running Out for a Viable No. 3

http://www.guardian.co.uk/technology/2012/apr/19/nokia-slumps-loss-competition-apple-samsung

http://www.aljazeera.com/business/2011/02/201129144053920207.html