Google, Nokia Android and Smartphone

Nokia was the world's largest vendor of mobile phones from 1998 to 2012. However, over the past five years it has suffered declining market share as a result of the growing use of smartphones, principally the Apple iPhone and devices running on Google's Android operating system. As a result, its share price has fallen from a high of US$40 in 2007 to under US$3 in 2012. Since February 2011, Nokia has had a strategic partnership with Microsoft, as part of which all Nokia smartphones will incorporate Microsoft's Windows Phone operating system (replacing Symbian). Nokia unveiled its first Windows Phone handsets, the Lumia 710 and 800, in October 2011. On May 4th, 2012, Nokia investors filled a class action against Nokia because of the disappointing Windows Phone sales. On August 22th, 2012, Nokia Finnish investors started considering gathering signatures to get CEO Elop out of the company.

As Nokia was the largest mobile phone and smartphone manufacturer worldwide at the time, it was suggested the alliance would make Microsoft's Windows Phone 7 a stronger contender against Android and iOS. Because previously increasing sales of Symbian smartphones began to fall rapidly in the beginning of 2011, Nokia was overtaken by Apple as the world's biggest smartphone maker by volume in June 2011. In August 2011 Chris Weber, head of Nokia's subsidiary in the U.S., stated "The reality is if we are not successful with Windows Phone, it doesn't matter what we do (elsewhere)." He further added "North America is a priority for Nokia because it is a key market for Microsoft.".

Nokia reported "well above 1 million" sales for its Lumia line up to January 26, 2012, 2 million sales for the first quarter of 2012,[80] and 4 million for the second quarter of 2012. In this quarter, Nokia only sold 600000 smartphones (Symbian and Windows Phone 7) in North America. For comparison, Nokia soll more than 30 million Symbian devices world-wide still in Q4 2010 and the Nokia N8 alone sold almost 4 million in its first quarter of sale. In Q2 2012, 26 million iPhones and 105 million Android phones have been shipped, but only 6.8 million devices with Symbian and 5.4 million with Windows Phone.