It's hard to say what is timing, what is product perfection, and what is good marketing. I remember being at a Nokia event in 2001 (basically "what are our future products as a recruiting event"). True, they talked about different concepts, including augmented reality and HUD solutions, that haven't taken off. But they certainly also talked about always-connected rich finger touch big-screen devices.
What was most striking at that event, however? I was the only one in the group I was in that thought the new devices seemed cool, and this was in a techy audience. Most phones only had circuit-switched data at this time, still going on basic WAP. Since then, we got cameras and MMS, HTML browsers, although limited. Most of these additions were also frowned upon by rather large groups, "why would I want a camera". And yet, they became commonplace. Only at that point did Apple release a smartphone which got a capacitive touch interface right. But even if capacitive touch had been available at a reasonable price point five years earlier, the market itself would not have been ready.
I can only guess that Nokia used focus groups more similar to my friends and concluded that a slow, gradual entry, focusing on niche devices, would be much easier on their R&D budget and result in higher sales. That held true for a number of years...