Nokia: Jump To
Nokia: Jump To
Public – Oyj
Type
(OMX: NOK1V, NYSE: NOK, FWB: NOA3)
Nokia has sites for research and development, manufacturing and sales in many
continents throughout the world. As of March 2008, Nokia had R&D centers in 10
countries and employed 30,415 people in research and development, representing
approximately 27% of Nokia’s total workforce.[3] The Nokia Research Center, founded in
1986, is Nokia's industrial research unit of about 800 researchers, engineers and
scientists.[4] It has sites in seven countries: Finland, Denmark, Germany, China, Japan,
United Kingdom and United States. Besides its NRCs, in 2001 Nokia founded (and
owns) INdT – Nokia Institute of Technology, a R&D institute located in Brazil. Nokia's
production facilities are located at Espoo, Oulu and Salo, Finland; Manaus, Brazil;
Beijing, Dongguan and Suzhou, China; Fleet, England; Komárom, Hungary; Chennai,
India; Reynosa, Mexico; Jucu, Romania and Masan, South Korea.[5][6] Nokia's Design
Department remains in Salo, Finland.
Nokia plays a very large role in the economy of Finland: it is by far the largest Finnish
company, accounting for about a third of the market capitalization of the Helsinki Stock
Exchange (OMX Helsinki) as of 2007; a unique situation for an industrialized country.[7]
It is an important employer in Finland and several small companies have grown into large
ones as Nokia's subcontractors. Nokia increased Finland's GDP by more than 1.5% in
1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5% and accounted for
almost a quarter of Finland's exports in 2003. In 2006, Nokia generated revenue that for
the first time exceeded the state budget of Finland.
Finns have ranked Nokia many times as the best Finnish brand and employer. The Nokia
brand, valued at $35.9 billion, is listed as the 5th most valuable global brand in
Interbrand/BusinessWeek's Best Global Brands list of 2008 (1st non-US company).[8][9] It
is the number one brand in Asia (as of 2007)[10] and Europe (as of 2008),[11] the 23rd most
admirable company worldwide in Fortune's World's Most Admired Companies list of
2008 (tied with Exxon Mobil; 2nd in Network Communications, 5th non-US company),
[12]
and is the world's 88th largest company in Fortune Global 500 list of 2008, up from
119 of the previous year.[13] As of 2008, AMR Research ranks Nokia's global supply
chain number two in the world.[14]
Contents
[hide]
• 1 History
o 1.1 Pre-telecommunications era
o 1.2 Telecommunications era
1.2.1 First mobile phones
1.2.2 Involvement in GSM
1.2.3 Networking equipment
1.2.4 Personal computers
1.2.5 Challenges of growth
o 1.3 In the new millennium
• 2 Corporate structure
o 2.1 Devices
o 2.2 Services & Software
o 2.3 Markets
o 2.4 Nokia Siemens Networks
• 3 Corporate affairs
o 3.1 Corporate governance
o 3.2 Historical logos
o 3.3 Corporate culture
• 4 Online services
o 4.1 .mobi and the Mobile Web
o 4.2 Ovi
o 4.3 MOSH
o 4.4 Comes With Music
• 5 Environmental record
• 6 Research cooperation with universities
• 7 See also
• 8 References
• 9 Further reading
• 10 External links
[edit] History
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.[15]
What is known today as Nokia was established in 1865 as a wood-pulp mill by Fredrik
Idestam on the banks of the Tammerkoski rapids in the town of Tampere, in south-
western Finland. The company was later relocated to the town of Nokia by the
Nokianvirta river, which had better resources for hydropower production. That is where
the company got the name that it still uses today. The name Nokia originated from the
river which flowed through the town. The river itself, Nokianvirta, was named after the
old Finnish word originally meaning a dark, furry animal that was locally known as the
nokia, or sable, or later pine marten.
Finnish Rubber Works established its factories in the beginning of 20th century nearby
and began using Nokia as its brand. Shortly after World War I, Finnish Rubber Works
acquired Nokia Wood Mills as well as Finnish Cable Works, a producer of telephone and
telegraph cables. These three companies were merged to form Nokia Corporation in
1967.
The new company was involved in many sectors, producing at one time or another paper
products, bicycle and car tires, footwear (including Wellington boots), personal
computers, communications cables, televisions, electricity generation machinery,
capacitors, aluminium, etc.
The seeds of the current incarnation of Nokia were planted with the founding of the
electronics section of the cable division in the 1960s. In the 1967 fusion, that section was
separated into its own division, and began manufacturing telecommunications equipment.
The Mobira Cityman 200, Nokia's NMT-900 mobile phone from the early 1990s.[16]
Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the
company's telecommunication 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. 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).[17] 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.
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. One year later, Nokia Mobira Oy became Nokia Mobile
Phones and in 1991 the first GSM phone was launched.
Nordic Mobile Telephony was the world's first mobile telephony standard that enabled
international roaming, and provided valuable experience for Nokia for its close
participation in developing Global System for Mobile Communications (GSM). It is a
digital standard which came to dominate the world of mobile telephony in the 1990s, in
mid-2006 accounting for about two billion mobile telephone subscribers in the world, or
about 80% percent of the total, in more than 200 countries. The world's first commercial
GSM call was made in 1991 in Helsinki over a Nokia-supplied network, by then Prime
Minister of Finland Harri Holkeri, using a Nokia phone.
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") for Finnish Defence Forces.[18]
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 (these problems probably contributed to Kairamo taking his own life in 1988).
Nokia responded by streamlining its telecommunications divisions, and by divesting
itself of the television and PC divisions. Jorma Ollila, who became the CEO in 1992,
made a strategic decision to concentrate solely on telecommunications. Thus, during the
rest of the 1990s, Nokia continued to divest itself of all of its non-telecommunications
divisions.
The exploding worldwide popularity of mobile telephones, beyond even Nokia's most
optimistic predictions, caused a logistics crisis in the mid-1990s. This prompted Nokia to
overhaul its entire logistics operation. Logistics continues to be one of Nokia's major
advantages over its rivals, along with greater economies of scale.
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.[23] This diminished Nokia's public image in Finland,[24][25] and produced a
number of court cases and an episode of a documentary television show critical of Nokia.
[26]
On September 22, 2003, Nokia acquired Sega.com, a branch of SEGA which has been
the major basis to build up the Nokia N-Gage.[27]
Despite these occasional crises, Nokia has been phenomenally successful in its chosen
field. Its growth has come mostly during the era of Jorma Ollila as CEO and his team of
about six close colleagues. In June 2006, Ollila left to become the chairman of Royal
Dutch Shell. Nokia's new CEO is Olli-Pekka Kallasvuo.
On February 10, 2006, Nokia acquired Intellisync Corporation, a provider of data and
PIM synchronization software.
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. Each company will have a 50% stake in the infrastructure
company, to be headquartered in the Helsinki area, and to be called Nokia Siemens
Networks. The companies predict annual sales of €16 bn and cost savings of €1.5 bn a
year by 2010. About 20,000 Nokia employees will be transferred to this new company.
The Nokia 6300, a member of the Nokia 6000 series, Nokia's largest family of phones.
In August 2006, Nokia acquired online music distributor Loudeye Corp for $60 m. The
company has been developing this into an online music service in the hope of using it to
generate handset sales. The service is expected to launch in late 2007 and would rival
iTunes.
In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to
open a new plant near the city in Jucu commune.[31][32]
In May 2007, Nokia announced that its Nokia 1100 handset, with over 200 million units
shipped, is the best-selling mobile phone of all time and the world's top-selling consumer
electronics product.[33]
In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing
solution for organizing and sharing photos, videos and other personal media.[34][35]
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 bn.[37]
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.[38] The service is expected to be 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 will be the first ever mobile filmmaking project directed by Spike Lee. This
will be a collaborative experience that exists across borders and perspectives—working
off a common script.
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.
[edit] Devices
Evolution of the Nokia Communicator. Models 9000, 9110, 9210 and 9500 shown.
The Devices division combines its existing mainline mobile phones division with the
separate subdivisions manufacturing Multimedia (Nseries) and Enterprise (Eseries) class
devices as well as formerly centralized core devices R&D – called Technology Platforms,
headed by Kai Öistämö.
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/WCDMA 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.[40]
The Services & Software division combines the existing Enterprise and Consumer driver
services businesses previously hosted in Multimedia and Enterprise as well as a number
of new acquisitions (Loudeye, Gate5, Enpocket, Intellisync, Avvenu and OZ), 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.
[edit] Markets
At the end of 2005, Nokia Networks had more than 150 mobile network customers
in more than 60 countries, with its systems serving in excess of 400 million
subscribers.
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. The Nokia Siemens
Networks brand identity was subsequently launched at the 3GSM World Congress
in Barcelona in February 2007.[41][42]
The operations of the company are managed within the framework set by the
Finnish Companies Act,[49] Nokia's Articles of Association[50] and Corporate
Governance Guidelines,[51] and related Board of Directors adopted charters.
Nokia
introduced its
"Connecting
People"
advertising
The Nokia slogan, coined
Nokia – Finnish "arrows" logo by Ove
Nokia Company Rubber Works Nokia Siemens
before its Strandberg.[53]
logo. Founded Ltd, founded in Networks logo.
Connecting The current logo's
in Tampere in Helsinki in
People logo. slogan uses Nokia's
1865, logo 1966.1898. proprietary Nokia
Logo 1965– font. This earlier
1966. font shown here
was Times Roman
SC (Small Caps).[54]
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.
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.[55]
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.[56][57] Since then, Nokia has
launched the largest mobile portal, Nokia.mobi, which receives over 100 million
visits a month.[58] It followed that with the launch of a mobile Ad Service to cater to
the growing demand for mobile advertisement.[59]
[edit] Ovi
Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept"
Internet services. Centered on Ovi.com, it will market as "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.[60]
The services so far announced to be offered through Ovi include the Nokia Music
Store, Nokia Maps and the N-Gage mobile gaming platform available for several
S60 smartphones.
[edit] MOSH
In August 2007, Nokia launched their new social network, dubbed MOSH. MOSH
by Nokia is the first-ever social network built by a handset manufacturer. MOSH
aims to bring social, media-based networks to the mobile environment. Users can
upload, download, share, and bookmark a variety of media - audio files, video files,
documents, applications, games, images.[61]
[edit] 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 and Sony BMG to bundle a year's worth of unlimited, DRM-free
downloads with the purchase of a Nokia 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.[38]