Description In 2013, Nokia sold its Device and Services business to Microsoft for 5.4 billion. For decades Nokia had led the telecommunications (telecom) industry in handsets and networking. By the late 2000s, however, Nokia's position as the market leader in mobile devices was threatened by competition from new lower-cost Asian manufacturers. Apple's 2007 release of its iPhone established an entirely new categorythe smartphoneimmediately popular with users. What were Nokia's missteps over the years? What should Nokia have done differently? Key Questions for Case Reading and Peer Learning Discussion 1. What were the factors that enabled Nokia to establish market leadership in the mobile phone business? 2. What was the firm's technology and market strategy? 3. How could have the firm better prepare itself for the smartphone era? 4. What decisions would you have made differently and when?