Nokia became a victim of its hardware engineers' lobby. They were the people who saw the presentation of the first iPhone in 2007, circulated an internal memo that it doesn't t have 3G and MMS, its camera sucks, and therefore can't be considered as a challenge at all.The CEOs back then listened to them and everybody went about their business as usual. That's why Nokia is what it is today.
The complete failure to see that exquisite design and intuitive user interface is much more important for commercial success than running benchmarks tests better, is what has prevented that same engineering crowd from realizing why open source Linux has been destroyed by Windows, although being free, stable and so on. Rather than facing this simple truth, those otherwise intelligent people bring up conspiracy theories involving Satan's children Microsoft and Apple, and how they destroyed all good in the world by using the satanic weapon "marketing", as well as other black magic.
There's also another group that as of July 2012 still claims that iPhones are inferior products, but I'd rather not comment on that.