This is a bigger deal than it sounds. The focus on Nokia is usually in the smartphone wars, where Nokia is nowhere and just made the controversial move to Windows Phone 7, but a more immediate, and perhaps serious concern, is Nokia’s competition at the lower end of the market, where Chinese and Taiwanese OEMs are undercutting it, and where all the growth is in price-sensitive emerging and developing markets.
The take on Nokia was always “Sure they’re nowhere in smartphones but they’re so huge and have such distribution power everywhere else that you can’t discount them”, and that’s still true. But if Nokia is being eaten alive both at the top and at the bottom of the market, then they really don’t have anything left. This is part of this story.