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the Nokianvirta river. Between 1865 and 1967, the company would become a
major industrial force; but it took a merger with a cable company and a rubber
firm to set the new Nokia Corporation on the path to electronics...
The history of Nokia goes back to 1865. That was when Fredrik Idestam built a
wood pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A
few years later, he built a second mill by the Nokianvirta river – the place that
gave Nokia its name.
It was a great success. Idestam’s invention won a bronze medal at the Paris
World Exposition in 1867, and he is considered to be the father of Finland’s
paper industry.
The Nokianvirta river is named after a dark, furry animal that was locally known
as the nokia – a type of marten
1898: Finnish Rubber Works founded
Eduard Polón founds Finnish Rubber Works, which will later become Nokia's
rubber business.
Russian connection
His knowledge of the Russian language and culture, as well as his industry
connections, proved crucial when Finnish Cable Works started exporting
products to the Soviet Union after the Second World War.
Award-winning athlete
Finnish Cable Works supplied cables to the Soviet Union as part of Finland’s war
reparations after WWII. This gave the company a good foothold for later trade
Finnish Cable Works, already working closely with Nokia Ab and Finnish Rubber
Works, branched out into electronics in the 1960s.
In 1962, it made its first electronic device in-house: a pulse analyzer designed
for use in nuclear power plants.
Changing times
Nokia would eventually leave consumer electronics behind in the 1990s. But the
telecommunications expertise it developed from the 1960s onwards would
become the core of its future work.
• Nokia Ab
• Finnish Cable Works
• Finnish Rubber Works
The companies, which had been jointly owned since 1922, officially merged in
1967. At the time, Nokia Ab was the smallest of the three.
The new Nokia Corporation had five businesses:
• rubber
• cable
• forestry
• electronics
• power generation
Each business had its own director who reported to the first Nokia Corporation
President, Björn Westerlund. As the president of Finnish Cable Works, he had
been responsible for setting up the company’s first electronics department,
sowing the seeds of Nokia’s future in telecommunications
The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of
mobile communications. As European telecommunications markets were deregulated and mobile networks
became global, Nokia led the way with some iconic products...
A new era for mobile phones began in 1981, with the launch of the Nordic Mobile Telephone (NMT) service.
Initially spanning several Nordic countries, the service was the world’s first international cellular network.
It was also the first to allow international roaming, and caught on fast both inside and outside Europe.
Mobile explosion
With the introduction of the NMT standard, the mobile phone industry began to expand rapidly.
Nokia soon introduced the first car phones to the network. The Mobira 450 car phone came in 1982,
followed by the portable in 1986. By this time the company was also providing base stations and switches
for NMT network operators.
As Nokia’s telecommunications business took off, its cable and rubber businesses were still going strong.
One of the great successes of the early 1970s was the Kontio – a rubber boot that was available in different
colors and proved a big hit with all age groups
The original mobile phones were heavy, bulky and usually permanently installed in cars.
But 1987 saw a breakthrough: Nokia launched the Mobira Cityman, the first handheld mobile phone for
NMT networks and a model that was to become a classic.
Seal of approval
Nokia’s mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was
pictured using a Cityman to make a call from Helsinki to his communications minister in Moscow. This led to
the phone’s affectionate nickname of the "Gorba".
Vital statistics
The Mobira Cityman 900 weighed 800 grams and had a price tag of 24,000 Finnish Marks (approximately
EUR 4,560).
On July 1, 1991, Finnish Prime Minister Harri Holkeri made the world’s first GSM call, using Nokia
equipment.
It was an appropriate choice. From the start, Nokia was one of the key developers of GSM technology. Its
expertise in the new standard, coupled with the deregulation of European telecommunications
markets in the 1980s and 1990s, was to be the cornerstone of its international success.
What is GSM?
The Global System for Mobile communications (GSM) was adopted in 1987 as the European standard for
digital mobile technology. This second generation mobile technology could carry data as well as voice
traffic.
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.
Nokia was in the vanguard of GSM’s development, delivering its first GSM network to the Finnish company
Radiolinja in 1989. Nokia launched its first digital handheld GSM phone, the Nokia 1011, in 1992.
By the end of the 1990s, Nokia had supplied GSM systems to more than 90 operators all over the world.
Nokia was the first manufacturer to make a series of handheld portable phones for all major digital
standards, including TDMA, PCN and Japan Digital, as well as GSM
In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important
strategic decision in its history.
As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile
telephone industry’s global boom – and made it the world leader before the end of the decade...
When Jorma Ollila became President and CEO of Nokia in 1992, the company made a crucial strategic
decision: to focus on telecommunications and move out of its other businesses.
During the 1990s, rubber, cable and consumer electronics divisions were gradually sold as the company
moved to concentrate on communications.
The strategy was to prove a big success, as Jorma Ollila’s long-term vision propelled Nokia onto the world
stage.
The Nokia Tune is probably one of the most frequently played pieces of music in the world.
The company introduced it as a ringtone in 1994 with the Nokia 2100 series, which went on to sell 20 million phones
worldwide. Nokia’s target had been 400,000.
The tune comes from a classical guitar work called Gran Vals, composed by Francisco Tarrega in the 19th century.
Ringtones have come a long way since 1994, and new phones offer dozens of choices in a variety of formats. With the
right phone, you can even create your own.
In 1997, everybody knew their Snake high score. The addictive game was launched on the Nokia 6110 and is rightly
considered a classic.
Snake and its successors are now available on an estimated 350 million mobile phones.
A new version of the game was created for the N-Gage platform in 2005. You can download it for free and share it over
your phone’s Bluetooth wireless connection.
1998: Nokia leads the world
Nokia becomes the world leader in mobile phones.
By 1998, Nokia’s focus on telecommunications and its early investment in GSM technologies had made the company the
world leader in mobile phones.
Expanding markets
For most of its history the company had exported to Europe, other Nordic countries and the Soviet Union. As late as 1991,
more than a quarter of its turnover still came from sales in Finland.
But after the strategic change of 1992, Nokia saw a huge increase in sales to North America, South America and Asia.
Soaring sales
The 1990s also saw unparalleled growth in global sales. Between 1996 and 2001, Nokia’s turnover increased almost
fivefold from EUR 6.5 billion to EUR 31 billion
Nokia’s story continues with 3G, mobile multiplayer gaming, multimedia devices and a look to the future...
The launch of 3G ("third generation") technology meant mobiles would never be the same again.
Nokia launched its first 3G phone, the Nokia 6650, in 2002. A vintage year for innovation, 2002 also saw the launch of
Nokia’s first phone with a built-in camera, the Nokia 7650, and its first video capture phone, the Nokia 3650.
Expanding possibilities
With 3G, mobiles can do much more than just make calls. 3G means you can use your phone to:
• download music
• make video calls
• watch TV on the move
• browse the web
A new generation of multimedia devices was born in 2005 with the launch of the Nokia Nseries.
The easy-to-use devices combine state-of-the-art technology with stylish design, creating complete entertainment and
communication packages.
Whether it’s taking your music collection mobile, shooting and editing feature-length video or watching TV
2005: The Nokia Nseries is born
Nokia introduces the next generation of multimedia devices, the Nokia Nseries.
2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia
launches Ovi, its new internet services brand.
2008
Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business
segment, Devices & Services.
December 2009
Networks technology
China
Finland
Germany
India
Mobile devices and technology
Brazil
China
Finland
Great Britain
Hungary
India
Mexico
Romania
South Korea
Nokia will empower everyone to share and make the most of their life by offering irresistible personal
experiences.
March 2010
The convergence of the mobile, internet and PC are a reality. Consumers want complete solutions not just devices, and
technology to be invisible. Consumer relationships are the new unit of value in this converged industry as consumers
"consume" services as they are created.
Our vision of the future
"Connecting people" is now connecting people to what matters - whatever that means for each person - giving them the
power to make the most of every moment, everywhere, any time. Connecting the "we" is more powerful than just the
individual. That's how Nokia is needed to help make the world a better place for everyone.
Our strategy
To do this we will become the leading provider of mobile solutions. Our solutions strategy leverages one of our greatest
assets - a portfolio of outstanding devices, with unmatched scale and geographic reach. We couple them with smart
services, integrated via an intuitive and seamless user experience. We differentiate these solutions offerings based on our
in-depth consumer understanding, with a strong focus on social location (people and places).
In a world where connecting people to what matters, empowers them to make the most of every moment. Our ambition is
to become the leading provider of mobile solutions
Mobile device ASP up EUR 4 from Q2 2010; mobile device volumes and margins constrained by component availability.
Read more
• Nokia expects Devices & Services net sales to be between EUR 8.2 billion and EUR 8.7 billion in the fourth
quarter 2010.
• Nokia expects its non-IFRS operating margin in Devices & Services to be between 10% and 12% in the fourth
quarter 2010.
• Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales to be between EUR 3.4 billion
and EUR 3.8 billion in the fourth quarter 2010.
• Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be
between 2% and 5% in the fourth quarter 2010.
• Nokia now expects industry mobile device volumes to be up more than 10% in 2010, compared to 2009 (based
on its revised definition of the industry mobile device market applicable beginning in 2010). Nokia previously
expected industry mobile device volumes to be up approximately 10% in 2010, compared to 2009.
• Nokia now expects its mobile device volume market share to be slightly down in 2010, compared to 2009. Nokia
earlier targeted its mobile device volume market share to be flat in 2010, compared to 2009.
• Nokia continues to expect its mobile device value market share to be slightly lower in 2010, compared to 2009.
• Nokia continues to expect non-IFRS operating expenses in Devices & Services of approximately EUR 5.7 billion
in 2010.
• Nokia continues to expect Devices & Services non-IFRS operating margin of 10% to 11% in 2010.
• Nokia and Nokia Siemens Networks continue to expect a flat market in Euro terms for the mobile and fixed
infrastructure and related services market in 2010, compared to 2009.
• Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks to maintain its market share in
2010.
• Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to reduce its non-IFRS
annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to
the end of 2009.
• Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks non-IFRS operating margin of
breakeven to 2% in 2010.