They were just lazy not that they didn't release anything good, they came up with Pureview and N9 but they didn't try to evolve themselves and in the end people were bored with their O.S.
A change is required always, I believe this will be the reason for iPhone's downfall.
Nokia tried their best last year with Lumia series when they announced it, I was excited I wanted to get one for me but I didn't bought one , simple reasons lack of features. I wanted front camera (don't laugh I actually use it) and they didn't gave me one, so I bought HTC Radar (best decision ever), many people bought the gorgeous looking Lumia 900 but they still managed to scare everyone again when Microsoft announced any phone running on Windows Phone 7 won't be upgraded.
Nokia needs to win people's trust again, they make the best Hardware all they need is support from Microsoft to stay in the race. This year they are releasing their Windows Phone 8 lineup which is impressive so far, but they need to do a lot more to bring back their old customers who now prefer other brand over Nokia.
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