Nokia Corporation (ADR): Definition from Answers.com

Company Perspectives
By connecting people, we help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people--both when they are far apart and face-to-face--and also bridges the gap between people and the information they need.
Key Dates
1865: Nokia is founded as a maker of pulp and paper.
1898: Finnish Rubber Works is founded.
1912: Finnish Cable Works is formed.
1915: Nokia shares are first listed on the Helsinki exchange.
1967: Nokia merges with Finnish Rubber Works and Finnish Cable Works to form Nokia Corporation.
1979: Mobira Oy is formed as a mobile phone company.
1981: The first international cellular system, the Nordic Mobile Telephone network, comes on line, having been developed with the help of Nokia.
1982: Nokia acquires Mobira, which later becomes the Nokia Mobile Phones division.
1986: Company markets internationally the first Nokia mobile telephone.
1993: The first Nokia digital cellular phone hits the market.
1998: Nokia surpasses Motorola as the world's number one maker of mobile phones.
2002: Nokia introduces the first third-generation compliant mobile phone.
2005: Jorma Ollila announces he will step down as chief executive officer in 2006.

Incorporated: 1865
NAIC: 334210 Telephone Apparatus Manufacturing; 334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing; 334310 Audio and Video Equipment Manufacturing; 334419 Other Electronic Component Manufacturing; 517212 Cellular and Other Wireless Telecommunications; 517910 Other Telecommunications; 551112 Offices of Other Holding Companies
SIC: 3661 Telephone & Telegraph Apparatus; 3663 Radio & T.V. Communications Equipment; 3651 Household Audio & Video Equipment; 3679 Electronic Components Nec; 4812 Radiotelephone Communications; 4899 Communications Services Nec; 6719 Holding Companies Nec

Nokia Corporation is the world's largest manufacturer of mobile phones, serving customers in 130 countries. Nokia is divided into four business groups: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones group markets wireless voice and data products in consumer and corporate markets. The Multimedia segment sells mobile gaming devices, home satellite systems, and cable television set-top boxes. The Enterprise Solutions group develops wireless systems for use in the corporate sector. Wireless switching and transmission equipment is sold through the company's Networks division. Nokia operates 15 manufacturing facilities in nine countries and maintains research and development facilities in 12 countries.

19th-Century Origins

Originally a manufacturer of pulp and paper, Nokia was founded as Nokia Company in 1865 in a small town of the same name in central Finland. Nokia was a pioneer in the industry and introduced many new production methods to a country with only one major natural resource, its vast forests. As the industry became increasingly energy-intensive, the company even constructed its own power plants. But for many years, Nokia remained an important yet static firm in a relatively forgotten corner of northern Europe. Nokia shares were first listed on the Helsinki exchange in 1915.

The first major changes in Nokia occurred several years after World War II. Despite its proximity to the Soviet Union, Finland has always remained economically connected with Scandinavian and other Western countries, and as Finnish trade expanded Nokia became a leading exporter.

During the early 1960s Nokia began to diversify in an attempt to transform the company into a regional conglomerate with interests beyond Finnish borders. Unable to initiate strong internal growth, Nokia turned its attention to acquisitions. The government, however, hoping to rationalize two underperforming basic industries, favored Nokia's expansion within the country and encouraged its eventual merger with Finnish Rubber Works, which was founded in 1898, and Finnish Cable Works, which was formed in 1912, to form Nokia Corporation. When the amalgamation was completed in 1966, Nokia was involved in several new industries, including integrated cable operations, electronics, tires, and rubber footwear, and had made its first public share offering.

In 1967 Nokia set up a division to develop design and manufacturing capabilities in data processing, industrial automation, and communications systems. The division was later expanded and made into several divisions, which then concentrated on developing information systems, including personal computers and workstations, digital communications systems, and mobile phones. Nokia also gained a strong position in modems and automatic banking systems in Scandinavia.

Oil Crisis, Corporate Changes: 1970s

Nokia continued to operate in a stable but parochial manner until 1973, when it was affected in a unique way by the oil crisis. Years of political accommodation between Finland and the Soviet Union ensured Finnish neutrality in exchange for lucrative trade agreements with the Soviets, mainly Finnish lumber products and machinery in exchange for Soviet oil. By agreement, this trade was kept strictly in balance. But when world oil prices began to rise, the market price for Soviet oil rose with it. Balanced trade began to mean greatly reduced purchasing power for Finnish companies such as Nokia.

Although the effects were not catastrophic, the oil crisis did force Nokia to reassess its reliance on Soviet trade (about 12 percent of sales) as well as its international growth strategies. Several contingency plans were drawn up, but the greatest changes came after the company appointed a new CEO, Kari Kairamo, in 1975.

Kairamo noted the obvious: Nokia was too big for Finland. The company had to expand abroad. He studied the expansion of other Scandinavian companies (particularly Sweden's Electrolux) and, following their example, formulated a strategy of first consolidating the company's business in Finland, Sweden, Norway, and Denmark, and then moving gradually into the rest of Europe. After the company had improved its product line, established a reputation for quality, and adjusted its production capacity, it would enter the world market.

Meanwhile, Nokia's traditional, heavy industries were looking increasingly burdensome. It was feared that trying to become a leader in electronics while maintaining these basic industries would create an unmanageably unfocused company. Kairamo thought briefly about selling off the company's weaker divisions, but decided to retain and modernize them.

He reasoned that, although the modernization of these low-growth industries would be very expensive, it would guarantee Nokia's position in several stable markets, including paper, chemical, and machinery productions, and electrical generation. For the scheme to be practical, each division's modernization would have to be gradual and individually financed. This would prevent the bleeding of funds away from the all-important effort in electronics while preventing the heavy industries from becoming any less profitable.

With each division financing its own modernization, there was little or no drain on capital from other divisions, and Nokia could still sell any group that did not succeed under the new plan. In the end, the plan prompted the machinery division to begin development in robotics and automation, the cables division to begin work on fiber optics, and the forestry division to move into high-grade tissues.

Rise of Electronics: 1980s

Nokia's most important focus was development of the electronics sector. Over the course of the 1980s, the firm acquired nearly 20 companies, focusing especially on three segments of the electronics industry: consumer, workstations, and mobile communications. Electronics grew from 10 percent of annual sales to 60 percent of revenues from 1980 to 1988.

In late 1984 Nokia acquired Salora, the largest color television manufacturer in Scandinavia, and Luxor, the Swedish state-owned electronics and computer firm. Nokia combined Salora and Luxor into a single division and concentrated on stylish consumer electronic products, since style was a crucial factor in Scandinavian markets. The Salora-Luxor division was also very successful in satellite and digital television technology. Nokia purchased the consumer electronics operations of Standard Elektrik Lorenz A.G. from Alcatel in 1987, further bolstering the company's position in the television market to the third largest manufacturer in Europe.

In early 1988 Nokia acquired the data systems division of the Swedish Ericsson Group, making Nokia the largest Scandinavian information technology business.

Although a market leader in Scandinavia, Nokia still lacked a degree of competitiveness in the European market, which was dominated by much larger Japanese and German companies. Kairamo decided, therefore, to follow the example of many Japanese companies during the 1960s (and Korean manufacturers a decade later) and negotiate to become an original equipment manufacturer, or OEM, to manufacture products for competitors as a subcontractor.

Nokia manufactured items for Hitachi in France, Ericsson in Sweden, Northern Telecom in Canada, and Granada and IBM in Britain. In doing so it was able to increase its production capacity stability. There were, however, several risks involved, those inherent in any OEM arrangement. Nokia's sales margins were naturally reduced, but of greater concern, production capacity was built up without a commensurate expansion in the sales network. With little brand identification, Nokia feared it might have a difficult time selling under its own name and become trapped as an OEM.

In 1986 Nokia reorganized its management structure to simplify reporting efforts and improve control by central management. The company's 11 divisions were grouped into four industry segments: electronics; cables and machinery; paper, power, and chemicals; and rubber and flooring. In addition, Nokia won a concession from the Finnish government to allow greater foreign participation in ownership. This substantially reduced Nokia's dependence on the comparatively expensive Finnish lending market. Although there was growth throughout the company, Nokia's greatest success was in telecommunications.

Having dabbled in telecommunications in the 1960s, Nokia cut its teeth in the industry by selling switching systems under license from a French company, Alcatel. The Finnish firm got in on the cellular industry's ground floor in the late 1970s, when it helped design the world's first international cellular system. Named the Nordic Mobile Telephone (NMT) network, the system linked Sweden, Denmark, Norway, and Finland. A year after the network came on line in 1981, Nokia gained 100 percent control of Mobira, the Finnish mobile phone company that would later become its key business interest as the Nokia Mobile Phones division. Mobira's regional sales were vastly improved, but Nokia was still limited to OEM production on the international market; Nokia and Tandy Corporation, of the United States, built a factory in Masan, South Korea, to manufacture mobile telephones. These were sold under the Tandy name in that company's 6,000 Radio Shack stores throughout the United States.

In 1986, eager to test its ability to compete openly, Nokia chose the mobile telephone to be the first product marketed internationally under the Nokia name; it became Nokia's "make or break" product. Unfortunately, Asian competitors began to drive prices down just as Nokia entered the market. Other Nokia products gaining recognition were Salora televisions and Luxor satellite dishes, which suffered briefly when subscription programming introduced broadcast scrambling.

The company's expansion, achieved almost exclusively by acquisition, had been expensive. Few Finnish investors other than institutions had the patience to see Nokia through its long-term plans. Indeed, more than half of the new shares issued by Nokia in 1987 went to foreign investors. Nokia moved boldly into Western markets; it gained a listing on the London exchange in 1987 and was subsequently listed on the New York exchange.

Crises of Leadership, Profitability in the Late 1980s and Early 1990s

Nokia's rapid growth was not without a price. In 1988, as revenues soared, the company's profits, under pressure from severe price competition in the consumer electronics markets, dropped. Chairman Kari Kairamo committed suicide in December of that year; not surprisingly, friends said it was brought on by stress. Simo S. Vuorileto took over the company's reins and began streamlining operations in the spring of 1988. Nokia was divided into six business groups: consumer electronics, data, mobile phones, telecommunications, cables and machinery, and basic industries. Vuorileto continued Kairamo's focus on high-tech divisions, divesting Nokia's flooring, paper, rubber, and ventilation systems businesses and entering into joint ventures with companies such as Tandy Corporation and Matra of France (two separate agreements to produce mobile phones for the U.S. and French markets).

In spite of these efforts, Nokia's pretax profits continued to decline in 1989 and 1990, culminating in a loss of $102 million in 1991. Industry observers blamed cutthroat European competition, the breakdown of the Finnish banking system, and the collapse of the Soviet Union. But, notwithstanding these difficulties, Nokia remained committed to its high-tech orientation. Late in 1991, the company strengthened that dedication by promoting Jorma Ollila from president of Nokia-Mobira Inc. (renamed Nokia Mobile Phones Ltd. the following year) to group president.

Leading the Telecommunications Revolution: Mid-1990s and Beyond

Forbes's Fleming Meeks credited Ollila with transforming Nokia from "a moneylosing hodgepodge of companies into one of telecommunications' most profitable companies." Unable to find a buyer for Nokia's consumer electronics business, which had lost nearly $1 billion from 1988 to 1993, Ollila cut that segment's workforce by 45 percent, shuttered plants, and centralized operations. Having divested Nokia Data in 1991, Nokia focused further on its telecommunications core by selling off its power unit in 1994 and its television and tire and cable units the following year.

The new leader achieved success in the cellular phone segment by bringing innovative products to market quickly with a particular focus on ever smaller and easier-to-use phones featuring sleek Finnish design. Nokia gained a leg up in cellphone research and development with the 1991 acquisition of the United Kingdom's Technophone Ltd. for $57 million. The company began selling digital cellular phones in 1993.

Ollila's tenure brought Nokia success and with it global recognition. The company's sales more than doubled, from FIM 15.5 billion in 1991 to FIM 36.8 billion in 1995, and its bottom line rebounded from a net loss of FIM 723 million in 1992 to a FIM 2.2 billion profit in 1995. Securities investors did not miss the turnaround: Nokia's market capitalization multiplied ten times from 1991 to 1994.

In late 1995 and early 1996, Nokia suffered a temporary setback stemming from a shortage of chips for its digital cellular phones and a resultant disruption of its logistics chain. The company's production costs rose and profits fell. Nokia was also slightly ahead of the market, particularly in North America, in regard to the shift from analog to digital phones. As a result, it was saddled with a great number of digital phones it could not sell and an insufficient number of analog devices. Nevertheless, Nokia had positioned itself well for the long haul, and within just a year or two it was arch-rival Motorola, Inc. that was burdened with an abundance of phones it could not sell, analog ones, as Motorola was slow to convert to digital. As a result, by late 1998, Nokia had surpassed Motorola and claimed the top position in cellular phones worldwide.

Aiding this surge was the November 1997 introduction of the 6100 series of digital phones. This line proved immensely popular because of the phones' small size (similar to a slim pack of cigarettes), light weight (4.5 ounces), and superior battery life. First introduced in the burgeoning mobile phone market in China, the 6100 soon became a worldwide phenomenon. Including the 6100 and other models, Nokia sold nearly 41 million cellular phones in 1998. Net sales increased more than 50 percent over the previous year, jumping from FIM 52.61 billion ($9.83 billion) to FIM 79.23 billion ($15.69 billion). Operating profits increased by 75 percent, while the company's skyrocketing stock price shot up more than 220 percent, pushing Nokia's market capitalization from FIM 110.01 billion ($20.57 billion) to FIM 355.53 billion ($70.39 billion).

Not content with conquering the mobile phone market, Nokia began aggressively pursuing the mobile Internet sector in the late 1990s. Already on the market was the Nokia 9000 Communicator, a personal all-in-one communication device that included phone, data, Internet, e-mail, and fax retrieval services. The Nokia 8110 mobile phone included the capability to access the Internet. In addition, Nokia was the first company to introduce a cellular phone that could be connected to a laptop computer to transmit data over a mobile network. To help develop further products, Nokia began acquiring Internet technology companies, starting with the December 1997, $120 million purchase of Ipsilon Networks Inc., a Silicon Valley firm specializing in Internet routing. One year later, Nokia spent FIM 429 million ($85 million) for Vienna Systems Corporation, a Canadian firm focusing on Internet Protocol telephony.

Acquisitions continued in 1999, when a further seven deals were completed, four of which were Internet-related. Meanwhile, net sales increased a further 48 percent in 1999, while operating profits grew by 57 percent; riding the late 1990s high-tech stock boom, the market capitalization of Nokia took another huge leap, ending the year at EUR 209.37 billion ($211.05 billion). Nokia's share of the global cellular phone market increased from 22.5 percent in 1998 to 26.9 percent in 1999, as the company sold 76.3 million phones in 1999.

Nokia's ascendance to the top of the wireless world by the end of the 1990s could be traced to the company being able to consistently, over and over again, come out with high-margin products superior to those of its competitors and in tune with market demands. The continuation of this trend into the 21st century was by no means certain as the increasing convergence of wireless and Internet technologies and the development of the third generation (3G) of wireless technology (which followed the analog and digital generations and which was slated to feature sophisticated multimedia capability) were predicted to open Nokia up to new and formidable competitors.

Perhaps the greatest threat was that chipmakers such as Intel would turn mobile phones into commodities just as they had previously done with personal computers; the days of the $500 Nokia phone were potentially numbered. Nevertheless, Nokia's 25 percent profit margins were enabling it to spend a massive $2 billion a year on research and development and continue to churn out innovative new products, concentrating on the various standards being developed for 3G wireless networks.

A Two-Pronged Approach in the 21st Century

Mobile communications developed along two broad fronts during the first years of the century, both of which played to Nokia's advantage, ensuring that the company remained the leader of its industry. The evolution of handsets into multimedia devices ushered in by 3G technology meant that Nokia could continue to rely on marketing expensive, sophisticated handsets. The days of the $500 Nokia phone gave way to the days of increasingly more expensive phones, such as the Nokia N90, a unit featuring a camera with Carl Zeiss optics, video-recording capabilities, and Internet access. Nokia could count on a substantial share of the high end of the market, a segment that continued to thrive midway through the decade, but the company's greatest strength was in the lower end of the market. In countries such as China, Brazil, and India there was a tremendous demand for inexpensive mobile phones, with analysts expecting 50 percent of the one billion handsets sold between 2005 and 2010 to be sold in developing economies. Industry observers believed there were only two companies in the world that could seriously compete for the estimated 800-million-unit-per year market for inexpensive handsets: Motorola and Nokia. Rivals such as Samsung, Sony Ericsson, and LG Electronics preferred to confine their activities to the high end of the market, while emerging low-cost producers lacked the manufacturing efficiencies enjoyed by Nokia and Motorola.

Against the backdrop of favorable market trends supporting Nokia's entrenched position, the company experienced a rare event in its modern history: a change in leadership. After a decade-and-a-half at the helm, CEO Ollila announced his retirement, effective June 2006. His replacement was a 25-year Nokia veteran named Olli-Pekka Kallasvuo, a lawyer by training whom Fortune, in that magazine's October 31, 2005 issue, described as so taciturn that "he can seem like an extra from an Ingmar Bergman movie."

Kallasvuo, who was promoted from his position as the head of the handset division, inherited an impressively capable company whose greatest challenge was contending with Motorola for the low end of the market and beating back competitors for control of the high end of the market. "Nokia is a dynamic company in a fast-changing and fluid environment," Kallasvuo said in a November 29, 2005 interview with the South China Morning Post. "I look forward to working together with our team to help Nokia shape the future of mobile communications at a pivotal time for the industry."

Principal Subsidiaries

Nokia Holding Inc.; Nokia Products Limited (Canada); Nokia IP Telephony Corporation (Canada); Nokia Telecommunications Inc.; Nokia Inc.; Nokia (China) Investment Co. Ltd.; Nokia (H.K.) Limited (Hong Kong); Nokia (Ireland) Ltd.; Nokia Australia Pty Limited; Nokia Asset Management Oy; Nokia Austria GmbH; Nokia Danmark A/S (Denmark); Nokia Do Brasil Ltda. (Brazil); Nokia Do Brasil Tecnologia Ltda. (Brazil); Nokia Finance International B.V. (Netherlands); Nokia France; Nokia GmbH (Germany); Nokia India Private Limited; Nokia Italia Spa (Italy); Nokia Korea Ltd.; Nokia Mobile Phones; Nokia Networks; Nokia Norge AS (Norway); Nokia Oyj; Nokia Pte Ltd. (Singapore); Nokia Spain, S.A.; Nokia Svenska AB (Sweden); Nokia U.K. Ltd.; Nokia Ventures Organization; Bave Tartum (U.K.); Beijing Nokia Hangxing Telecommunications Systems Co., Ltd. (China); Doctortel--Assistencia De Telecomunicaes S.A. (Portugal); Funda Ao Nokia De Ensino (Brazil); Instituto Nokia De Tecnologia (Brazil); Nokia (M) Sdn Bhd (Malaysia); Nokia Argentina S.A.; Nokia Belgium NV; Nokia Capitel Telecommunications Ltd. (China); Nokia Ecuador S.A.; Nokia Hellas Communications S.A.; Nokia Hungary Kommunikacios Korlatolt Felelossegu Tarsasag (Hungary); Nokia Israel Ltd.; Nokia Middle East (United Arab Emirates; Nokia Nederland B.V. (Netherlands); Nokia Poland Sp Z.O.O.; Nokia Portugal S.A.; Nokia Private Joint Stock Company (Russia); Nokia Research Center; Nokia River Golf Ry; Nokia S.A. (Columbia); Nokia Servicios, S.A. de C.V. (Mexico); Nokia Technology GmbH (Germany); Nokianvirta Oy; Oy Scaninter Nokia Ltd.; Pointo Nokia Oy.

Principal Competitors

Telefonaktiebolaget LM Ericsson; Motorola, Inc.; Siemens AG; Sony Corporation.

Nokia Corporation

Type	Public – Oyj (OMX: NOK1V, NYSE: NOK, FWB: NOA3)
Founded	Tampere, Finland (1865) incorporated in Nokia (1871)
Founder(s)	Fredrik Idestam
Headquarters	Espoo, Finland
Area served	Worldwide
Key people	Jorma Ollila (Chairman) Olli-Pekka Kallasvuo (President & CEO) Timo Ihamuotila (CFO) Mary T. McDowell (CDO)
Industry	Telecommunications Internet Computer software
Products	Mobile phones Smartphones Mobile computers Networks (See products listing)
Services	Services and Software Online services
Revenue	▼ €50.722 bn (2008)^[1]^[2]
Operating income	▼ €4.966 bn (2008)
Net income	▼ €3.988 bn (2008)
Total assets	▲ €39.582 bn (2008)
Total equity	▼ €16.510 bn (2008)
Employees	123,347 in 120 countries (September 30, 2009)^[3]
Divisions	Devices Services Markets
Subsidiaries	Nokia Siemens Networks Navteq Symbian Vertu Qt Software
Website	Nokia.com

History


Fredrik Idestam, founder of Nokia.		Leo Mechelin

The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.^[24]

Pre-telecommunications era

The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy).^[25]

Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper.^[26] In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production.^[27] In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today.^[27]

The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable.^[28] After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day.^[29]

Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirement from the management of the company in 1896 allowed Mechelin to become the company's chairman (from 1898 until 1914) and sell most shareholders on his plans, thus realizing his vision.^[27] In 1902, Nokia added electricity generation to its business activities.^[26]

Industrial conglomerate

In 1898, Eduard Polón founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business.^[25] At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and began using Nokia as its product brand.^[30] In 1912, Arvid Wickström founded Finnish Cable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses.^[25] At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy.^[31] To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company.^[31] In 1922, Finnish Rubber Works acquired Finnish Cable Works.^[32] In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16 years as its Technical Director.^[33] After World War II, Finnish Cable Works supplied cables to the Soviet Union as part of Finland's war reparations. This gave the company a good foothold for later trade.^[33]

The three companies, which had been jointly owned since 1922, were merged to form a new industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia's future as a global corporation.^[34] The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including Wellington boots), communications cables, televisions and other consumer electronics, personal computers, electricity generation machinery, robotics, capacitors, military communications and equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminium and chemicals.^[24] Each business unit had its own director who reported to the first Nokia Corporation President, Björn Westerlund. As the president of the Finnish Cable Works, he had been responsible for setting up the company’s first electronics department in 1960, sowing the seeds of Nokia’s future in telecommunications.^[35]

Eventually, the company decided to leave consumer electronics behind in the 1990s and focused solely on the fastest growing segments in telecommunications.^[36] Nokian Tyres, manufacturer of tyres split from Nokia Corporation to form its own company in 1988^[37] and two years later Nokian Footwear, manufacturer of rubber boots, was founded.^[30] During the rest of the 1990s, Nokia divested itself of all of its non-telecommunications businesses.^[36]

Telecommunications era

The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in 1960 and the production of its first electronic device in 1962: a pulse analyzer designed for use in nuclear power plants.^[35] In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment.

Networking equipment

In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. In 1982, a DX 200 switch became the world's first microprocessor controlled telephone exchange and the first fully digital exchange to be taken into service in Europe. The DX 200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products.^[38] In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started.^[39]

For a while in the 1970s, Nokia's network equipment production was separated into Telefenno, a company jointly owned by the parent corporation and by a company owned by the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications.

In the 1970s and 1980s, Nokia developed the Sanomalaitejärjestelmä ("Message device system"), a digital, portable and encrypted text-based communications device for the Finnish Defence Forces.^[40] The current main unit used by the Defence Forces is the Sanomalaite M/90 (SANLA M/90).^[41]

First mobile phones

The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978.^[42]

In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully-automatic cellular phone system that went online in 1981.^[43] In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.^[43]

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003.^[44] The Mobira Cityman line was launched in 1987.^[45]

Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. In 1987, Nokia introduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately €4,560).^[45] Despite the high price, the first phones were almost snatched from the sales assistants’ hands. Initially, the mobile phone was a "yuppie" product and a status symbol.^[24]

Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba".^[45]

In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with two other employees from the unit, started a notable mobile phone company of their own, Benefon Oy (since renamed to GeoSentric).^[46] One year later, Nokia-Mobira Oy became Nokia Mobile Phones.

Involvement in GSM

Nokia was one of the key developers of GSM (Global System for Mobile Communications),^[47] the second-generation mobile technology which could carry data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony standard that enabled international roaming, provided valuable experience for Nokia for its close participation in developing GSM, which was adopted in 1987 as the new European standard for digital mobile technology.^[48]^[49]

Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989.^[50] The world's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM phone.^[50] In 1992, the first GSM phone, the Nokia 1011, was launched.^[50]^[51] The model number refers to its launch date, 10 November.^[51] The Nokia 1011 did not yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia 2100 series.^[52]

GSM's high-quality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use.^[50] GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for about three billion mobile telephone subscribers in the world, with more than 700 mobile operators across 218 countries and territories. New connections are added at the rate of 15 per second, or 1.3 million per day.^[53]

Personal computers and IT equipment

See also: MikroMikko and Nokia Booklet 3G

In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers called MikroMikko.^[54] MikroMikko was Nokia Data's attempt to enter the business computer market. The first model in the line, MikroMikko 1, was released on September 29, 1981,^[55] around the same time as the first IBM PC. However, the personal computer division was sold to the British ICL (International Computers Limited) in 1991, which later became part of Fujitsu.^[56] MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the MikroMikko line was marketed by Fujitsu as the ErgoPro.

Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers, which shut down its only factory in Espoo, Finland (in the Kilo district, where computers had been produced since the 1960s) at the end of March 2000,^[57]^[58] thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT and early TFT LCD displays for PC and larger systems application. The Nokia Display Products' branded business was sold to ViewSonic in 2000.^[59] In addition to personal computers and displays, Nokia used to manufacture DSL modems and digital set-top boxes.

Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet 3G mini laptop.^[60]

Challenges of growth

In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields, mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into serious financial problems, a major reason being its heavy losses by the television manufacturing division and businesses that were just too diverse.^[61] These problems, and a suspected total burnout, probably contributed to Kairamo taking his own life in 1988. After Kairamo's death, Simo Vuorilehto became Nokia's Chairman and CEO. In 1990–1993, Finland underwent severe economic depression,^[62] which also struck Nokia. Under Vuorilehto's management, Nokia was severely overhauled. The company responded by streamlining its telecommunications divisions, and by divesting itself of the television and PC divisions.^[63]

Probably the most important strategic change in Nokia's history was made in 1992, however, when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely on telecommunications.^[36] Thus, during the rest of the 1990s, the rubber, cable and consumer electronics divisions were gradually sold as Nokia continued to divest itself of all of its non-telecommunications businesses.^[36]

As late as 1991, more than a quarter of Nokia's turnover still came from sales in Finland. However, after the strategic change of 1992, Nokia saw a huge increase in sales to North America, South America and Asia.^[64] The exploding worldwide popularity of mobile telephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis in the mid-1990s.^[65] This prompted Nokia to overhaul its entire logistics operation.^[66] By 1998, Nokia’s focus on telecommunications and its early investment in GSM technologies had made the company the world's largest mobile phone manufacturer.^[64] Between 1996 and 2001, Nokia’s turnover increased almost fivefold from 6.5 billion euros to 31 billion euros.^[64] Logistics continues to be one of Nokia's major advantages over its rivals, along with greater economies of scale.^[67]^[68]

Recent history

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It may be slanted towards recent events. Please edit this page to keep recent events in historical perspective. Tagged since May 2008.
It may contain an inappropriate mixture of prose and timeline. Tagged since March 2008.

Milestones and releases

Reduction in size of Nokia mobile phones

Nokia opened its Komárom, Hungary mobile phone factory on May 5, 2000.^[69]

In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune.^[13]^[70]^[71] Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.^[72]^[73]

In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003,^[44] with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product.^[74]

In November 2007, Nokia announced and released the Nokia N82, its first (and currently, only) Nseries phone with Xenon flash.

At the Nokia World conference in December 2007, Nokia announced their "Comes With Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads.^[75] The service became commercially available in the second half of 2008.

In April 2008, Nokia began finding new ways to connect people, asking the "audience" to use their creativity and their mobile devices to become Nokia’s production company – to take part in filming, acting, editing and producing a collaborative film. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. This was a collaborative experience that existed across borders and perspectives, working off a common script. The film premiered in October 2008.^[76]

In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry devices offering a full keyboard and cheaper prices.

Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G.^[60]

On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3.^[77] The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera.

On September 10, 2009, Nokia unveiled a new handset 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad.^[78] The new mobile, which will be available exclusively through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands and weighs around 3.44 ounces.

Reorganizations

In April 2003, the troubles of the networks equipment division caused the corporation to resort to similar streamlining practices on that side, including layoffs and organizational restructuring.^[79] This diminished Nokia's public image in Finland,^[80]^[81] and produced a number of court cases and an episode of a documentary television show critical of Nokia.^[82]

On February 2006, Nokia and Sanyo announced a memorandum of understanding to create a joint venture addressing the CDMA handset business. But in June, they announced ending negotiations without agreement. Nokia also stated its decision to pull out of CDMA research and development, to continue CDMA business in selected markets.^[83]^[84]^[85]

In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch Shell^[86] and to give way for Olli-Pekka Kallasvuo.^[87]^[88]

In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to the Internet business as a whole. Nokia no longer wants to be seen as the telephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with.^[89]

In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan.^[90] Following early December, distribution of Nokia E71 is cancelled, both from NTT docomo and SoftBank Mobile. Nokia Japan retains global research & development programs, sourcing business, and an MVNO venture of Vertu luxury phones, using docomo's telecommunications network.

Acquisitions

For a more comprehensive list, see List of acquisitions by Nokia

The Nokia 6300, a member of the Nokia 6000 series, Nokia's largest family of phones.

On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became the major basis to develop the Nokia N-Gage device.^[91]

On November 16, 2005, Nokia and Intellisync Corporation, a provider of data and PIM synchronization software, signed a definitive agreement for Nokia to acquire Intellisync.^[92] Nokia completed the acquisition on February 10, 2006.^[93]

On June 19, 2006, Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, Nokia Siemens Networks.^[94] Each company has a 50% stake in the infrastructure company, and it is headquartered in Espoo, Finland. The companies predicted annual sales of €16 bn and cost savings of €1.5 bn a year by 2010. About 20,000 Nokia employees were transferred to this new company.

On August 8, 2006, Nokia and Loudeye Corp. announced that they had signed an agreement for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60 million.^[95] The company has been developing this into an online music service in the hope of using it to generate handset sales. The service, launched on August 29, 2007, is aimed to rival iTunes. Nokia completed the acquisition on October 16, 2006.^[96]

In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solution for organizing and sharing photos, videos and other personal media.^[97]^[98]

In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile advertising technology and services.^[99]

In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1 billion.^[6]^[100] Nokia finalized the acquisition on July 10, 2008.^[101]

In September, 2008, Nokia acquired OZ Communications, a privately held company with approximately 220 employees headquartered in Montreal, Canada.^[102]

On July 24, 2009, Nokia announced that it will acquire certain assets of cellity, a privately owned mobile software company which employs 14 people in Hamburg, Germany.^[103] The acquisition of cellity was completed on August 5, 2009.^[104]

On September 11, 2009, Nokia announced the acquisition of "certain assets of Plum Ventures, Inc, a privately held company which employed approximately 10 people with main offices in Boston, Massachusetts. Plum will complement Nokia’s Social Location services" ^[105]

Corporate affairs

Corporate structure

Divisions

Evolution of the Nokia Communicator. Models 9000, 9110, 9210 and 9500 shown.

Since January 1, 2008, Nokia comprises three business groups: Devices, Services and Markets.^[106] The three main units receive operational support from the Corporate Development Office, led by Mary T. McDowell, which is also responsible for exploring corporate strategic and future growth opportunities.^[106]

On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.^[107]

Devices

The Devices division is responsible for developing and managing Nokia's mobile device portfolio, including the sourcing of components, headed by Kai Öistämö.^[106] The division consists of the previous mainline Mobile Phones division with the separate subdivisions Multimedia (Nseries devices) and Enterprise Solutions (Eseries devices) as well as formerly centralized core devices R&D – called Technology Platforms.

This division provides the general public with mobile voice and data products across a wide range of mobile devices, including high-volume, consumer oriented mobile phones and devices, and more expensive multimedia and enterprise-class devices. The devices are based on GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies. Nokia's Nseries Multimedia Computers extensively uses Symbian OS.

In the first quarter of 2006 Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only the world's leading supplier of mobile phones and digital cameras (as most of Nokia's mobile telephones feature digital cameras, it is also believed that Nokia has recently overtaken Kodak in camera production making it the largest in the world), Nokia is now also the leading supplier of digital audio players (MP3 players), outpacing sales of devices such as the iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440 million mobile phones which accounted for 40% of all global mobile phones sales.^[108]

Services

The Services division operates in five areas of consumer Internet services: music, maps, media, messaging and games.^[106] The division consists of the previous enterprise and consumer driver services businesses previously hosted in Multimedia and Enterprise Solutions divisions, as well as a number of new acquisitions (Loudeye, Gate5, Enpocket, Intellisync, Avvenu and OZ Communications), headed by Niklas Savander.

The group works with companies outside the telecommunications industry to make advances in the technology and bring new applications and possibilities in areas such as online services, optics, music synchronization and streaming media.

Markets

The Markets division, the successor organization to Nokia's Customer and Market Operations division, is responsible for the management of the supply chains, sales channels, brand and marketing functions of the company, headed by Anssi Vanjoki.^[106]

Subsidiaries

Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia Siemens Networks and Navteq.^[106] Other notable subsidiaries include, but are not limited to Vertu, a British-based manufacturer and retailer of luxury mobile phones; Qt Software, a Norwegian-based software company, and OZ Communications, a consumer e-mail and instant messaging provider.

Until 2009 Nokia was the major shareholder in Symbian Limited, a software development and licensing company that produced Symbian OS, a smartphone operating system used by Nokia and other manufacturers. In 2009 Nokia acquired Symbian Ltd and, along with a number of other companies, created the Symbian Foundation to distribute the Symbian platform royalty free and as open source.

Nokia Siemens Networks

Main article: Nokia Siemens Networks

Nokia Siemens Networks (previously Nokia Networks) provides wireless and wired network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers.^[106] Nokia Siemens Networks focuses in GSM, EDGE, 3G/W-CDMA and WiMAX radio access networks; core networks with increasing IP and multiaccess capabilities; and services.

On June 19, 2006 Nokia and Siemens AG announced the companies are to merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, called Nokia Siemens Networks.^[94] The Nokia Siemens Networks brand identity was subsequently launched at the 3GSM World Congress in Barcelona in February 2007.^[109]^[110]

As of March 2009, Nokia Siemens Networks serves more than 600 operator customers in more than 150 countries, with over 1.5 billion people connected through its networks.^[111]

Navteq

Main article: Navteq

Navteq is a Chicago, Illinois-based provider of digital map data for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.^[106] Navteq was acquired by Nokia on October 1, 2007.^[6] Navteq’s map data is part of the Nokia Maps online service where users can download maps, use voice-guided navigation and other context-aware web services.^[106] Nokia Maps is part of the Ovi brand of Nokia's Internet based online services.

Corporate governance

The control and management of Nokia is divided among the shareholders at a general meeting and the Group Executive Board (left),^[112] under the direction of the Board of Directors (right).^[113] The Chairman and the rest of the Group Executive Board members are appointed by the Board of Directors. Only the Chairman of the Group Executive Board can belong to both, the Board of Directors and the Group Executive Board. The Board of Directors' committees consist of the Audit Committee,^[114] the Personnel Committee^[115] and the Corporate Governance and Nomination Committee.^[116]^[117]

The operations of the company are managed within the framework set by the Finnish Companies Act,^[118] Nokia's Articles of Association^[119] and Corporate Governance Guidelines,^[120] and related Board of Directors adopted charters.

Group Executive Board ^[112]
Olli-Pekka Kallasvuo (Chairman), b. 1953 President, CEO and Group Executive Board Chairman of Nokia Corporation since June 1, 2006 Member of the Nokia Board of Directors since May 3, 2007 With Nokia 1980–1981, rejoined 1982, Group Executive Board member since 1990
Esko Aho, b. 1954 Executive Vice President, Corporate Relations and Responsibility Joined Nokia November 1, 2008, Group Executive Board member since 2009
Timo Ihamuotila, b. 1966 Executive Vice President, Chief Financial Officer With Nokia 1993–1996, rejoined 1999, Group Executive Board member since 2007
Mary T. McDowell, b. 1964 Executive Vice President, Chief Development Officer Joined Nokia 2004, Group Executive Board member since 2004
Hallstein Mørk, b. 1953 Executive Vice President, Human Resources Joined Nokia 1999, Group Executive Board member since 2004
Dr. Tero Ojanperä, b. 1966 Executive Vice President, Services Joined Nokia 1990, Group Executive Board member since 2005
Niklas Savander, b. 1962 Executive Vice President, Services Joined Nokia 1997, Group Executive Board member since 2006
Richard A. Simonson, b. 1958 Executive Vice President, Mobile Phones, Devices Joined Nokia 2001, Group Executive Board member since 2004
Alberto Torres, b. 1965 Executive Vice President, Solutions Joined Nokia 2004, Group Executive Board member since October 1, 2009
Anssi Vanjoki, b. 1956 Executive Vice President, Markets Joined Nokia 1991, Group Executive Board member since 1998
Dr. Kai Öistämö, b. 1964 Executive Vice President, Devices Joined Nokia 1991, Group Executive Board member since 2005

Board of Directors ^[113]
Jorma Ollila (Chairman), b. 1950 Board member since 1995, Chairman of the Board of Directors since 1999 Chairman of the Board of Directors of Royal Dutch Shell PLC
Dame Marjorie Scardino (Vice Chairman), b. 1947 Board member since 2001 Chairman of the Corporate Governance and Nomination Committee, Member of the Personnel Committee Chief Executive Officer and member of the Board of Directors of Pearson PLC
Georg Ehrnrooth, b. 1940 Board member since 2000 Chairman of the Audit Committee, Member of the Corporate Governance and Nomination Committee
Lalita D. Gupte, b. 1948 Board member since 2007, Member of the Audit Committee Non-executive Chairman of the ICICI Venture Funds Management Co Ltd.
Dr. Bengt Holmström, b. 1949 Board member since 1999 Paul A. Samuelson Professor of Economics at Massachusetts Institute of Technology, joint appointment at the MIT Sloan School of Management
Dr. Henning Kagermann, b. 1947 Board member since 2007, Member of the Personnel Committee CEO and Chairman of the Executive Board of SAP AG
Olli-Pekka Kallasvuo, b. 1953 Board member since 2007 President and CEO of Nokia Corporation
Per Karlsson, b. 1955 Board member since 2002, Independent Corporate Advisor Chairman of the Personnel Committee, Member of the Corporate Governance and Nomination Committee
Isabel Marey-Semper, b. 1967 Board member since 2009, Member of the Audit Committee Chief Financial Officer, EVP in charge of strategy of PSA Peugeot Citroën
Risto Siilasmaa, b. 1966 Board member since 2008, Member of the Audit Committee Founder and Chairman of F-Secure
Keijo Suila, b. 1945 Board member since 2006, Member of the Audit Committee

Former corporate officers

Chief Executive Officers		Chairmen of the Board of Directors ^[121]
Björn Westerlund	1967–1977	Lauri J. Kivekäs	1967–1977	Simo Vuorilehto	1988–1990
Kari Kairamo	1977–1988	Björn Westerlund	1977–1979	Mika Tiivola	1990–1992
Simo Vuorilehto	1988–1992	Mika Tiivola	1979–1986	Casimir Ehrnrooth	1992–1999
Jorma Ollila	1992–2006	Kari Kairamo	1986–1988	Jorma Ollila	1999–
Olli-Pekka Kallasvuo	2006–

Logos

Nokia Company logo. Founded in Tampere in 1865, incorporated in Nokia in 1871.^[26]	The brand logo of Finnish Rubber Works, founded in Helsinki in 1898.^[30] Logo from 1965–1966.	The Nokia Corporation "arrows" logo, used before the "Connecting People" logo.	Nokia introduced its "Connecting People" advertising slogan, coined by Ove Strandberg.^[122] This earlier version of the slogan used Times Roman SC (Small Caps) font.^[123]
Nokia's current logo with the redesigned "Connecting People" slogan. This slogan uses Nokia's proprietary 'Nokia' font.	Nokia Siemens Networks logo. Founded in 2007.	Navteq logo. Founded in 1985, acquired by Nokia in 2007.

Stock

Nokia, a public limited liability company, is the oldest company listed under the same name on the Helsinki Stock Exchange (since 1915).^[24] Nokia’s shares are also listed on the Frankfurt Stock Exchange (since 1988) and New York Stock Exchange (since 1994).^[11]^[24]

Corporate culture

The Nokia House, Nokia's head office in Keilaniemi, Espoo, Finland.

Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy.^[124]

The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail.

Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, and Renewal. In May 2007, Nokia redefined its values after initiating a series of discussions worldwide as to what the new values of the company should be. Based on the employee suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for Innovation and Very Human.^[124]

Online services

.mobi and the Mobile Web

Nokia was the first proponent of a Top Level Domain (TLD) specifically for the Mobile Web and, as a result, was instrumental in the launch of the .mobi domain name extension in September 2006 as an official backer.^[125]^[126] Since then, Nokia has launched the largest mobile portal, Nokia.mobi, which receives over 100 million visits a month.^[127] It followed that with the launch of a mobile Ad Service to cater to the growing demand for mobile advertisement.^[128]

Ovi

Main article: Ovi (Nokia)

Nokia Ovi logo.

Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept" Internet services.^[129] Centered on Ovi.com, it is marketed as a "personal dashboard" where users can share photos with friends, download music, maps and games directly to their phones and access third-party services like Yahoo's Flickr photo site. It has some significance in that Nokia is moving deeper into the world of Internet services, where head-on competition with Microsoft, Google and Apple is inevitable.^[130]

The services offered through Ovi include the Ovi Store (Nokia's application store), the Nokia Music Store, Nokia Maps, Ovi Mail, the N-Gage mobile gaming platform available for several S60 smartphones, Ovi Share, Ovi Files, and Contacts and Calendar.^[131] The Ovi Store, the Ovi application store was launched in May 2009.^[132] Prior to opening the Ovi Store, Nokia integrated its software Download! store, the stripped-down MOSH repository and the widget service WidSets into it.^[133]

My Nokia

Nokia offers a free personalised service to its subscribers called My Nokia (located at my.nokia.com).^[134] Registered My Nokia users can avail free services as follows:

Tips & tricks alerts through web, e-mail and also mobile text message.
My Nokia Backup: A free online backup service for mobile contacts, calendar logs and also various other files. This service needs GPRS connection.
Numerous ringtones, wallpapers, screensavers, games and other things can be downloaded free of cost.

Comes With Music

On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative, a program that would partner with Universal Music Group International,Sony BMG, Warner Music Group, and EMI as well as hundreds of Independent labels and music aggregators to bundle 12, 18, or 24 months worth of unlimited free music downloads with the purchase of a Nokia Comes With Music edition phone. Following the termination of the year of free downloads, tracks can be kept without having to renew the subscription. Downloads will be both PC and mobile-based.^[75]

Nokia Messaging

On August 13, 2008, Nokia launched a beta release of "Nokia Email service", a new push e-mail service, since graduated as part of Nokia Messaging.^[135]

Nokia Messaging operates as a centralised, hosted service that acts as a proxy between the Nokia Messaging client and the user's e-mail server. It does not allow for a direct connection between the phone and the e-mail server, and is therefore required to send e-mail credentials to Nokia's servers.^[136]

Controversy

NSN's provision of intercept capability to Iran

A cartoon about Nokia's provision of intercept capability to Iran and people who were arrested in Iran by IRI regime using intercept capabilities

In 2008, Nokia Siemens Networks, a joint venture between Nokia and Siemens AG, reportedly provided Iran's monopoly telecom company with technology that allowed it to intercept the Internet communications of its citizens to an unprecedented degree.^[137] The technology reportedly allowed it to use deep packet inspection to read and even change the content of everything from "e-mails and Internet phone calls to images and messages on social-networking sites such as Facebook and Twitter". The technology "enables authorities to not only block communication but to monitor it to gather information about individuals, as well as alter it for disinformation purposes," expert insiders told The Wall Street Journal. During the post-election protests in Iran in June 2009, Iran's Internet access was reported to have slowed to less than a tenth of its normal speeds, and experts suspected this was due to the use of the interception technology.^[138]

The joint venture company, Nokia Siemens Networks, asserted in a press release that it provided Iran only with a 'lawful intercept capability' "solely for monitoring of local voice calls". "Nokia Siemens Networks has not provided any deep packet inspection, web censorship or Internet filtering capability to Iran," it said.^[139]

In July 2009, Nokia began to experience a boycott of their products and services in Iran. The boycott was led by consumers sympathetic to the post-election protest movement and targeted at those companies deemed to be collaborating with the Islamic regime. Demand for handsets fell and users began shunning SMS messaging.^[140]

Lex Nokia

In 2009, Nokia heavily supported the passing of a law in Finland that allows companies to monitor their employees’ electronic communications in cases of suspected information leaking.^[141] Contrary to rumors, Nokia denied that the company would have considered moving its head office out of Finland if laws on electronic surveillance were not changed.^[142] The Finnish media dubbed the name "Lex Nokia" for this law.

Environmental record

Electronic products such as cell phones impact the environment both during production and after their useful life when they are discarded and turned into electronic waste. According to environmental organization Greenpeace, Nokia has a good track record in limiting the amount of toxic chemicals in its products, supporting recycling, and reducing impact on climate change, compared to other market leaders in the electronics industry. In the 13th Greenpeace Guide to Greener Electronics, Nokia stays in first place with a total score of 7.5/10.^[143]^[144]

In version 13 of the Guide, Nokia scored maximum points for its voluntary take-back program, which spans 84 countries with almost 5,000 collection points for end-of-life mobile phones.^[145] It also scored top marks for the information it provides on what to do with discarded products.^[146] However, the recycling rate of Nokia phones was only 3–5% in 2008, according to a global consumer survey released by Nokia.^[147] Nokia scored very well on toxic chemical issues; it launched new models free of PVC at the end of 2005, first products without components containing BFRs from January 2007, and aims to have all new models free of all brominated and chlorinated compounds and antimony trioxide from the beginning of 2010.^[148] Nokia scored maximum points for committing to reduce absolute CO₂ emissions by a minimum of 10% in 2009 and 18% in 2010 from a baseline year of 2006.^[149] Top marks were given for product energy efficiency as all but one of its mobile phone chargers exceed the EPA’s Energy Star requirements by 30–90%.^[150] Nokia also provides eco-declarations for all of its products.^[151]

Nokia is currently actively researching the use of recycled plastics in their products, which are currently used only in packaging.^[152] In an effort to further reduce their environmental impact in the future, Nokia released a new phone concept, Remade, in February 2008.^[153] The phone has been constructed of solely recyclable materials.^[153] The outer part of the phone is made from recycled materials such as aluminum cans, plastic bottles, and used car tires.^[154] The screen is constructed of recycled glass, and the hinges have been created from rubber tires. The interior of the phone is entirely constructed with refurbished phone parts, and there is a feature that encourages energy saving habits by reducing the backlight to the ideal level, which then allows the battery to last longer without frequent charges.

Research cooperation with universities

Nokia is actively exploring and engaging in open innovation through selective research collaborations with major universities and institutions by sharing resources and leveraging ideas. Current collaborations include:^[155]

École Polytechnique Fédérale de Lausanne, Switzerland
ETH Zurich, Switzerland
Helsinki University of Technology, Finland
Massachusetts Institute of Technology, United States
Stanford University, United States
Tampere University of Technology, Finland
Tsinghua University, China
University of California, Berkeley, United States
University of Cambridge, United Kingdom
University of Southern California, United States

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^ "How the companies line up: Greenpeace Guide to Greener Electronics, 13th Edition". Greenpeace International. 2009-09-30. http://www.greenpeace.org/international/campaigns/toxics/electronics/how-the-companies-line-up. Retrieved 2009-09-30.
^ Greenpeace International (2009-09-30). "Greenpeace Guide to Greener Electronics, 13th Edition" (PDF). Press release. http://www.greenpeace.org/raw/content/international/press/reports/guide-to-greener-electronics-13-edition.pdf. Retrieved 2009-09-30.
^ "Recycling – Take-back and recycling". Nokia Corporation. http://www.nokia.com/environment/our-responsibility/environmental-report-2008/take-back-and-recycling. Retrieved 2009-07-27.
^ "Where and how to recycle". Nokia Corporation. http://www.nokia.com/environment/we-recycle/where-and-how-to-recycle. Retrieved 2009-07-27.
^ Nokia Corporation (2008-07-08). "Global consumer survey reveals that majority of old mobile phones are lying in drawers at home and not being recycled". Press release. http://www.nokia.com/press/press-releases/showpressrelease?newsid=1234291. Retrieved 2009-07-27.
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Title	Author	Publisher	Year	Length	ISBN
Nokia: The Inside Story	Martti Häikiö	FT / Prentice Hall	October 2002	256 pp	ISBN 0-273-65983-9
Work Goes Mobile: Nokia's Lessons from the Leading Edge	Michael Lattanzi, Antti Korhonen, Vishy Gopalakrishnan	John Wiley & Sons	January 2006	212 pp	ISBN 0-470-02752-5
Mobile Usability: How Nokia Changed the Face of the Mobile Phone	Christian Lindholm, Turkka Keinonen, Harri Kiljander	McGraw-Hill Companies	June 2003	301 pp	ISBN 0-07-138514-2
Business The Nokia Way: Secrets of the World's Fastest Moving Company	Trevor Merriden	John Wiley & Sons	February 2001	168 pp	ISBN 1-84112-104-5
The Nokia Revolution: The Story of an Extraordinary Company That Transformed an Industry	Dan Steinbock	AMACOM Books	April 2001	375 pp	ISBN 0-8144-0636-X

External links

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Official Nokia portal (with complete list of regional websites)
Nokia Corporation Company Profile at Yahoo!
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Official Forum Nokia for developers
Official Russian Forum Nokia
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v • d • e Nokia mobile phones by series

Nokia 1000 series	1011 · 1100/1101 · 1110/1110i · 1112 · 1200 · 1208 · 1600 · 1650

Nokia 2000 series	2110i · 2115i · 2310 · 2600 · 2600 classic · 2610 · 2630 · 2650 · 2651 · 2760

Nokia 3000 series	3100/3100b/3105 · 3110 · 3110 classic · 3120 · 3120 classic · 3155 · 3200/3200b/3205 · 3210 · 3220 · 3230 · 3250 · 3310 · 3315 · 3330 · 3410 · 3500 classic · 3510/3590/3595 · 3510i · 3600/3620/3650/3660 · 3600 slide · 3720 classic

Nokia 5000 series	5070 · 5100 · 5110 · 5130 · 5200 · 5210 · 5220 · 5300 · 5310 · 5320 · 5500 Sport · 5510 · 5610 · 5700 · 5730 · 5800

Nokia 6000 series	6010 · 6020/6021 · 6030 · 6070 · 6085 · 6100 · 6101 · 6103 · 6110/6120 · 6110 Navigator · 6111 · 6120/6121/6124 classic · 6131/6133 · 6136 · 6151 · 6170 · 6210 Navigator · 6220 Classic · 6230 · 6233 · 6255i · 6260 Slide · 6265 · 6270 · 6275i · 6280/6288 · 6290 · 6300 · 6300i · 6301 · 6310i · 6315i · 6500 classic · 6500 slide · 6555 · 6600 · 6600 fold · 6600 slide · 6610i · 6620 · 6630 · 6650 · 6650 fold · 6670 · 6680 · 6681/6682 · 6730 · 6700 classic · 6720 Classic · 6800 · 6810 · 6820 · 6822

Nokia 7000 series	7110 · 7160 · 7250 · 7280 · 7360 · 7380 · 7390 · 7500 Prism · 7600 · 7610 · 7650 · 7700 · 7710 · 7900 Prism

Nokia 8000 series	8110 · 8210 · 8250 · 8310 · 8600 Luna · 8800 · 8850 · 8910

Nokia Communicator	9000/9110/9110i · 9210/9290 · 9210i · 9300/9300i · 9500

Nokia Eseries	E50 · E51 · E52 · E55 · E60 · E61/E61i · E62 · E63 · E65 · E66 · E70 · E71 · E72 · E75 · E90 Communicator

Nokia Nseries	N70 · N71 · N72 · N73 · N75 · N76 · N78 · N79 · N80 (Internet Edition) · N81 (N81 8GB) · N82 · N85 · N86 8MP · N90 · N91 (N91 8GB) · N92 · N93 · N93i · N95 · N95 8GB · N96 · N97

Nokia Xseries	X3 · X6

Internet Tablet	770 · N800 · N810 (WiMAX Edition) · N900

Other	N-Gage (Classic · QD · QD Silver Edition) · Vertu luxury phones

Concept	Nokia Morph · S60

List of Nokia products

v • d • e OMX Helsinki 25 companies of Finland

Cargotec · Elisa · Fortum · Kesko · KONE · Konecranes · Metso · Neste Oil · Nokia · Nokian Tyres · Nordea · Orion Corporation · Outokumpu · Outotec · Pohjola Bank · Rautaruukki · Sampo · Sanoma · Stora Enso · Talvivaara Mining Company · TeliaSonera · Tieto · UPM · Wärtsilä · YIT

v • d • e OMX Stockholm 30 companies of Sweden

ABB · Alfa Laval · Assa Abloy · AstraZeneca · Atlas Copco · Boliden · Electrolux · Ericsson · Getinge · Hennes & Mauritz · Investor AB · Lundin Petroleum · Modern Times Group · Nokia · Nordea · Sandvik · SCA · Scania · SEB · Securitas · Skanska · SKF · SSAB · Svenska Handelsbanken · Swedbank · Swedish Match · Tele2 · TeliaSonera · Volvo

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