Nokia Is in Deep Trouble: 10 Reasons Why

News Analysis: Nokia is struggling to stay relevant in the mobile market, but it's clear it's not succeeding. Nokia is in deep trouble and it might not overcome its problems even with Microsoft as a technology partner.

In the mobile market, much of the focus is placed on Apple and Google, two companies that have proved over the last few years that with the right idea and powerful software, companies can enter a market with entrenched competitors and still reign supreme. Now, the iPhone and Android-based devices are capturing the attention (and cash) of consumers around the globe.

But amid all that success, there is one company that's struggling to maintain its once lofty market position. Nokia used to hold the top spot in the mobile market and was easily dominating the space. But over the last few years, the company has lost its way as more-capable alternatives continue to hammer its market position. Now, Nokia is turning to Windows Phone 7 and its upcoming N9 smartphone to help turn that tide. But no matter what the company does, it won't help.

Nokia is in deep trouble. Read on to find out why:

1. No one wants Symbian

For years, Symbian was the dominant operating system in the mobile market. But its market share has shrunk even though it's still hanging on in some parts of the world. Symbian can't compete any longer with Google's Android platform and Apple's iOS, which are the operating systems that have grabbed customers' attention. Symbian was a sound, reliable mobile phone operating system, but it was bypassed by more sophisticated competitors. Now Nokia finds itself in a difficult position with an aging operating system and no viable successor technology of its own.

2. Windows Phone 7 isn't catching on

Nokia earlier this year tried to change its luck by announcing that Windows Phone would become the "principal" operating system in its smartphones going forward. When those devices launch, however, they will need to overcome Windows Phone 7's lack of appeal in the mobile market. Microsoft's OS was too late to the game, and due to updating issues and design quirks, consumers haven't jumped at the chance to use Windows Phone 7. Chances are Nokia won't be able to change that situation.

3. Consumers have gone elsewhere

Nokia phones were once a consumer favorite, but no longer. Other devices, including the Apple iPhone and Samsung Galaxy S smartphone, among many others, have captured consumers' imagination. Consumers stuck around in support of Nokia for a while, but after they realized that the company wasn't reacting very adroitly, they left, and they might not come back.

4. Trust is gone

Following that, it's important to note that consumers around the world have lost trust in Nokia. There was a time when they could count on the company to deliver the latest and greatest platform on the market. But over the last several years, it has been slow to react, and when it did offer products, they failed to appeal to the new customer. Now,consumers don't know if they can trust Nokia's claims that it will change all that in the coming years. That alone will be a difficult issue for Nokia to overcome.

Don Reisinger

Don Reisinger

Don Reisinger is a longtime freelance contributor to several technology and business publications. Over his career, Don has written about everything from geek-friendly gadgetry to issues of privacy...