Well, in Nokia's case, they did not have anything that could keep its customers hooked onto Nokia phones like the lenses of Canon & Nikon. But I do agree that arrogance of not taking competition seriously will cost them dearly ... in the 80's Nikon (who was the supreme leader of SLR cameras) did not take Canon AF lenses seriously and it paid very dearly by losing its top position to Canon and has not caught up ever since. Having said that, with the current lens reliant cameras I do not see any problem with either Canon or Nikon losing out to anyone ... at least not until the competition comes up with some incredibly compelling lenses to match the capabilities of the sensors.
A good nights sleep has made me think that my argument is not accurate. Perhaps Canon is taking it´s competition very seriously (ofcourse they are), because Canons cameras are very very capable, perhaps the best, if we see them as a complete package. The arrogance is perhaps against their customers, since many of them are heavily invested in lenses, and jumping ship is first of all very expensive, and sencond, Canon have the best lens lineup of all. That is why they can charge sky high prices for cameras that are not revolutionary, but a carefull evolution of it´s predecessor.
Sorry to have pulled this thread a bit off topic. I look forward to see Canons answer if Nikon is surpassing them on key specifications, like the 16 bit procesing. This is directly linked to the IQ, and therefore more important than AF for me (hobbyist). (And, to be clear, I do want a good AF, but IQ > AF, as AF, light meter and so on are all aids for the sensor to do its job. Crap sensor is still crap even if you have the best AF in the world. AF with some drawbacks can be overcome with technique.)