January 21, 2025 – A recently disclosed internal document from Nokia reveals that at least nine employees recognized the significant threat posed by the first-generation iPhone just a day after its release. These employees promptly submitted a confidential internal report highlighting their concerns.
It’s worth noting that prior to the iPhone’s launch, Nokia held approximately 50% of the mobile phone market share, significantly ahead of its competitors. At that time, Nokia was not only a financial leader but also a trendy and fashionable brand, especially popular among teenagers.

The nine-member team from Nokia submitted their report just two days after the iPhone’s debut, anticipating a shift in the industry. The report’s summary emphasized that Apple’s iPhone represented a high-end competitive product. Its touchscreen user interface (UI) had the potential to establish a new benchmark in the sector. Additionally, the report praised the iPhone’s UI for its “stunning visual effects and extremely fast response,” suggesting that Nokia should develop a touch UI to meet the challenge. They believed that this new user interface might redefine market standards for an exceptional user experience.

Although the team might not have fully grasped the future implications of web access and mobile applications, if the Nokia board had heeded their advice, the company might still hold a prominent position in the smartphone market today. Regrettably, just seven years later, Nokia exited the smartphone business, which is a poignant reminder of missed opportunities.