Did they want to get into smartphones? I worked for Nokia somewhere in 2004-2006, designing music software for their latest prototypes. I don't remember anyone I spoke to at Nokia seeing the iPhone coming. There were other things that did bits of the iPhone, but nothing as slick and finished. Nokia were bad at software, honestly. They were outsourcing all their "1st party" apps to random dev shops who didn't get enough support and technical docs from the mothership to really make their apps work well. And every dev outfit had their own design ideas and design language. Apple vertically-integrated everything and shipped a really polished-looking product and made Nokia look pretty dumb, IMO.