In a candidly bold note to Nokia employees, CEO Stephan Elop said "Nokia is currently a "burning platform," and that the only way off is to jump into the freezing water. Elop wasn't vague about it, either." Elop also talked about Nokia entirely missing the top spot on Smartphones to Apple.
"The first iPhone shipped in 2007, and we still don't have a product that is close to their experience. Android came on the scene just over 2 years ago, and this week they took our leadership position in smartphone volumes. Unbelievable."
"In 2008, Apple's market share in the $300+ price range was 25%; by 2010 it escalated to 61%. They are enjoying a tremendous growth trajectory with a 78% earnings growth year over year in Q4 2010. Apple demonstrated that if designed well, consumers would buy a high-priced phone with a great experience and developers would build applications. They changed the game, and today, Apple owns the high-end range."
Here's the full memo: