Belive their own marketing hype
This is what happens to a company which starts believing in its own marketing and hype. Nokia, according to the analysts, was selling more smartphones than anyone else, so why change anything? A smartphone is a smartphone, right?
Except the source of the 'smartphone' definition is suspect. A smartphone is not a smartphone unless your marketing guys tell the analysts that it is, and it has a reasonable spec. If your marketing is good enough, the analysts will put underqualified phones (and that's what we're talking about, IMHO) in the most desired category, thus artificially inflating your 'market share' and pleasing the stock-holders.
But if you forget about this artificial inflation, there is great temptation to use it as an excuse to slack off on R&D, because (according to the analysts) you already own the market. Why innovate, it's expensive. And you get caught with your pants down, unable to innovate and compete effectively. Hmm, what does that remind me of??
Sorry Nokia, but I've switched loyalties to Android and no way will I ever stick a Windows anything in my pocket.