Nokia's downfall?

I see that both Nokia and Blackberry are suffering from the onslaught of iPhones and Android devices. Nokia is now thinking of transferring more production out of Finland, which could have interesting effects nationally, and is, presumably with some sense of desperation, trying to come up with an answer.  Having appointed an ex-MSoft man to head up the company, I suppose it was inevitable that he would reach a deal with MSoft on phone software.  Probably a big mistake.  Microsoft has never really been a phone company and has been running behind Apple and Google for months now - as a (relatively) late arrival on the phone scene its chances of catching up are remote.  I suspect that we are not only seeing the beginning of the end for Nokia, but perhaps the beginning of the end for Microsoft.  Inconceivable?  Well, all companies have a lifetime and if you pause to think of how many computer companies have disappeared or have been eaten by other companies, you'll realise that there's no such thing in this industry as an improbable event.