What the hell is happening with Nokia? Once a market leader, it is now putting out profit warnings that its second quarter earnings will be lower than expected because of pressure from Apple and other smart phone makers.

Nokia has a problem with its strategy. Like a rabbit caught in the headlights, it's too slow to react and there will be no improvement this year or for that matter the next. While Apple's recently unveiled iPhone 4 is flying off virtual shelves with 600,000 pre-orders and other vendors rolling out models with Google Inc.'s Android software, Nokia isn't even there. It's new N8 handset is not yet ready to hit the market. "The smartphone revolution has started and Nokia is not there," Helena Nordman-Knutson, a Stockholm-based analyst at Oehman told Bloomberg's Diana ben-Aaron The N8 "will be old when it's out because everybody has taken the next step."

Looking at it strategically, Nokia will not survive unless it finds its place in the industry. But where to look? Apple has cornered the market on user-friendliness and lifestyle integration with iTunes and widespread apps support, while Research in Motion, makers of the Blackberry, has a firm grasp on the enterprise market.Unless it finds a niche, Nokia will continue to struggle and go nowhere on the road to irrelevance.