Form that did not follow function, phones that looked liked some flashy "original-but-not-really-original" design study straight out of a bachelor's Product Design class.
They could never have invented the iPhone, even if they were organised differently. The culture just wasn't there. The herculean drive to simplify, beautify and improve and NOT ACCEPT HALF-BAKED CRAP that propels Apple is impossible to replicate if it is not part of your DNA and vigorously enforced from the very top.
Nokia wanted to "segment markets", Apple wanted to build the perfect phone.