The document discusses Nokia's failure to understand the future direction of mobile devices towards smartphones. Researchers at Nokia had presented a touchscreen smartphone prototype in 2004, but senior management rejected it, allowing other companies like Apple to become leaders in the smartphone market. Despite losing market share, Nokia tried to innovate by focusing on its telecommunications network infrastructure business, which generates most of its revenue. This strategy shift may allow Nokia to compete against other manufacturers and win by redefining its market orientation.