Nokia

Nokia Corporation

Type	Public – Oyj (OMX: NOK1V, NYSE: NOK, FWB: NOA3)
Industry	Telecommunications Internet Computer software
Founded	Tampere, Finland (1865) incorporated in Nokia (1871)
Founder(s)	Fredrik Idestam, Leo Mechelin
Headquarters	Espoo, Finland
Area served	Worldwide
Key people	Jorma Ollila (Chairman) Olli-Pekka Kallasvuo (President & CEO) Timo Ihamuotila (CFO) Kai Öistämö (CDO)
Products	Mobile phones Smartphones Mobile computers Networks (See products listing)
Services	Services and software Online services
Revenue	€40.99 billion (2009)[1]
Operating income	€1.197 billion (2009)[1]
Net income	€891 million (2009)[1]
Total assets	€35.74 billion (2009)[1]
Total equity	€14.75 billion (2009)[1]
Employees	129,746 (June 30, 2010)[2]
Divisions	Devices Services Solutions Markets
Subsidiaries	Nokia Siemens Networks Navteq Symbian Vertu Qt Development Frameworks
Website	Nokia.com

Nokia Corporation (Finnish pronunciation: [ˈnɔkiɑ]) (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.^[3] Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009.^[1] It is the world's largest manufacturer of mobile telephones: its global device market share was about 33% in Q2 2010, down from 35% in Q2 2009 and unchanged from Q1 2010 (beginning in 2010 Nokia revised its definition of the industry mobile device market that it use to estimate industry volumes).^[2] Nokia's converged device market share was about 41% in Q2, unchanged from Q1 2010.^[2] Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services.^[4] Nokia is also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq.^[5]

Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and employed 37,020 people in research and development, representing approximately 30% of the group's total workforce.^[1] The Nokia Research Center, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists.^[6][7] It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.^[8] Besides its research centers, in 2001 Nokia founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in Brazil.^[9] Nokia operates a total of 15 manufacturing facilities^[10] located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South Korea.^[11][12] Nokia's industrial design department is headquartered in Soho in London, England with significant satellite offices in Helsinki, Finland and Calabasas, California in the USA.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges.^[10] 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.^[13] It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors.^[14] Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.^[15]

In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007.^[16] The Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2009 (first non-US company).^[17][18] It is the number one brand in Asia (as of 2007)^[19] and Europe (as of 2009),^[20] the 41st most admirable company worldwide in Fortune's World's Most Admired Companies list of 2010 (third in Network and Other Communications Equipment, seventh non-US company),^[21] and the world's 85th largest company as measured by revenue in Fortune Global 500 list of 2009, up from 88th the previous year.^[22] As of 2010, AMR Research ranks Nokia's global supply chain number nineteen in the world.^[23]

In July 2010, Nokia announced that their profits had dropped 40%. ^[24]

History

Fredrik Idestam, founder of Nokia.		Statesman Leo Mechelin, co-founder of Nokia.

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.^[25]

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).^[26]

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.^[27] 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.^[28] 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.^[28]

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.^[29] 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.^[30]

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.^[28] In 1902, Nokia added electricity generation to its business activities.^[27]

Industrial conglomerate

In 1898, Eduard Polón founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business.^[26] 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.^[31] 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.^[26] At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy.^[32] To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company.^[32] In 1922, Finnish Rubber Works acquired Finnish Cable Works.^[33] 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.^[34] 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.^[34]

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.^[35] The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including rubber 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.^[25] 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.^[36]

Eventually, the company decided to leave consumer electronics behind in the 1990s and focused solely on the fastest growing segments in telecommunications.^[37] Nokian Tyres, manufacturer of tyres split from Nokia Corporation to form its own company in 1988^[38] and two years later Nokian Footwear, manufacturer of rubber boots, was founded.^[31] During the rest of the 1990s, Nokia divested itself of all of its non-telecommunications businesses.^[37]

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.^[36] In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment. A key CEO and subsequent Chairman of the Board was vuorineuvos Björn "Nalle" Westerlund (1912–2009), who founded the electronics department and let it run a loss for 15 years.

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.^[39] In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started.^[40]

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.^[41] The current main unit used by the Defence Forces is the Sanomalaite M/90 (SANLA M/90).^[42]

First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003.^[43] The Mobira Cityman line was launched in 1987.^[44]

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.^[45]

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.^[46] In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.^[46]

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).^[44] 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.^[25]

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".^[44]

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).^[47] 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),^[48] 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.^[49][50]

Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989.^[51] 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.^[51] In 1992, the first GSM phone, the Nokia 1011, was launched.^[51][52] The model number refers to its launch date, 10 November.^[52] 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.^[53]

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.^[51] 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.^[54]

Personal computers and IT equipment

The Nokia Booklet 3G mini laptop.

In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers called MikroMikko.^[55] 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,^[56] 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.^[57] 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,^[58][59] 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.^[60] 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.^[61]

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.^[62] 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,^[63] 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.^[64]

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.^[37] 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.^[37]

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.^[65] The exploding worldwide popularity of mobile telephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis in the mid-1990s.^[66] This prompted Nokia to overhaul its entire logistics operation.^[67] 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.^[65] Between 1996 and 2001, Nokia’s turnover increased almost fivefold from 6.5 billion euros to 31 billion euros.^[65] Logistics continues to be one of Nokia's major advantages over its rivals, along with greater economies of scale.^[68][69]

Recent history

Product releases

Reduction in size of Nokia mobile phones.

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

In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003,^[43] with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product.^[70]

In November 2007, Nokia announced and released the Nokia N82, its first 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.^[71] The service became commercially available in the second half of 2008.

Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. Work began in April 2008, and the film premiered in October 2008.^[72]

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.^[61]

On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3.^[73] 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.^[74] 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.

Plant movements

Nokia opened its Komárom, Hungary mobile phone factory on May 5, 2000.^[75]

In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune.^[12][76][77] Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.^[78][79]

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.^[80] This diminished Nokia's public image in Finland,^[81][82] and produced a number of court cases and an episode of a documentary television show critical of Nokia.^[83]

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.^[84][85][86]

In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch Shell^[87] and to give way for Olli-Pekka Kallasvuo.^[88][89]

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.^[90]

In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan.^[91] 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

The Nokia E55, a mobile phone in the business segment and part of the Nokia Eseries range.

On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became the major basis to develop the Nokia N-Gage device.^[92]

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.^[93] Nokia completed the acquisition on February 10, 2006.^[94]

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.^[95] 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.^[96] 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.^[97]

In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solution for organizing and sharing photos, videos and other personal media.^[98][99]

In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile advertising technology and services.^[100]

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.^[5][101] Nokia finalized the acquisition on July 10, 2008.^[102]

In September, 2008, Nokia acquired OZ Communications, a privately held company with approximately 220 employees headquartered in Montreal, Canada.^[103]

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.^[104] The acquisition of cellity was completed on August 5, 2009.^[105]

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".^[106]

On March 28, 2010, Nokia announced the acquisition of Novarra, the mobile web browser firm from Chicago. Terms of the deal were not disclosed.Novarra is a privately-held company based in Chicago, IL and provider of a mobile browser and service platform and has more than 100 employees.^[107]

On April 10,2010 Nokia announced acquisition of MetaCarta whose technology will be used in the area of local search in location and other services, Financial details of acquisition were not disclosed. ^[108]

Corporate affairs

Corporate structure

Divisions

Since October 1, 2009, Nokia comprises four business groups: Devices, Services, Solutions and Markets.^[109] The four 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.^[109]

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.^[110]

Devices

The Nokia N900, a Maemo 5 Linux based mobile Internet device and touchscreen smartphone from Nokia's Nseries portfolio.

The Devices division is responsible for developing and managing Nokia's mobile device portfolio, including the sourcing of components, headed by Kai Öistämö.^[109] 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.^[111]

Services

The Services division operates in five areas of consumer Internet services: music, maps, media, messaging and games.^[109] 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.

Solutions

Solutions is responsible for Nokia's offering of solutions, where the mobile device, personalized services and content are integrated into a package for the consumer. The unit is led by Alberto Torres.

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.^[109]

Subsidiaries

The Nokia 5800 XpressMusic, a touchscreen smartphone and portable entertainment device which emphasizes music and multimedia playback.

Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia Siemens Networks and Navteq.^[109] 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 2008 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 2008 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

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.^[109] 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.^[95] The Nokia Siemens Networks brand identity was subsequently launched at the 3GSM World Congress in Barcelona in February 2007.^[112][113]

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.^[114]

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.^[109] Navteq was acquired by Nokia on October 1, 2007.^[5] 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.^[109] 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),^[115] under the direction of the Board of Directors (right).^[116] 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,^[117] the Personnel Committee^[118] and the Corporate Governance and Nomination Committee.^[119][120]

The operations of the company are managed within the framework set by the Finnish Companies Act,^[121] Nokia's Articles of Association^[122] and Corporate Governance Guidelines,^[123] and related Board of Directors adopted charters.

Group Executive Board (July 2010) [115] 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. Former Prime Minister of Finland (1991–1995). 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, Mobile Phones Joined Nokia 2004, Group Executive Board member since 2004 Dr. Tero Ojanperä, b. 1966 Executive Vice President, Services, Mobile Solutions Joined Nokia 1990, Group Executive Board member since 2005 Niklas Savander, b. 1962 Executive Vice President, Markets Joined Nokia 1997, Group Executive Board member since 2006 Alberto Torres, b. 1965 Executive Vice President, MeeGo Computers, Mobile Solutions Joined Nokia 2004, Group Executive Board member since October 1, 2009 Anssi Vanjoki, b. 1956 Executive Vice President, Mobile Solutions Joined Nokia 1991, Group Executive Board member since 1998 Juha Äkräs, b. 1965 Executive Vice President, Human Resources Joined Nokia 1993, Group Executive Board member since 2010 Dr. Kai Öistämö, b. 1964 Executive Vice President, Chief Development Officer Joined Nokia 1991, Group Executive Board member since 2005

Board of Directors [116] 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 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

Logos

Nokia Company logo. Founded in Tampere in 1865, incorporated in Nokia in 1871.[27]	The brand logo of Finnish Rubber Works, founded in Helsinki in 1898.[31] 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[125] and used since 1992.[126] This earlier version of the slogan used Times Roman SC (Small Caps) font.[127]
Nokia's current logo used since 2006,[128] with the redesigned "Connecting People" slogan. This slogan uses Nokia's proprietary 'Nokia Sans' font, designed by Erik Spiekermann.[129]	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).^[25] Nokia’s shares are also listed on the Frankfurt Stock Exchange (since 1988) and New York Stock Exchange (since 1994).^[10][25]

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.^[130]

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.^[130]

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.^[131][132] Since then, Nokia has launched the largest mobile portal, Nokia.mobi, which receives over 100 million visits a month.^[133] It followed that with the launch of a mobile Ad Service to cater to the growing demand for mobile advertisement.^[134]

Ovi

Nokia Ovi logo.

Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept" Internet services.^[135] 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.^[136]

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.^[137] The Ovi Store, the Ovi application store was launched in May 2009.^[138] Prior to opening the Ovi Store, Nokia integrated its software Download! store, the stripped-down MOSH repository and the widget service WidSets into it.^[139]

On March 23, 2010, Nokia announced launch of its online magazine called the Nokia Ovi. The 44-page magazine contains articles on products by Nokia, what Ovi stands for , tips and tricks on the usage of Nokia mini laptop Booklet 3G, latest reviews of mobile applications, news about the mobile maker's services and apps such as Ovi maps, files and mail. Users can download the magazine as a PDF or view it online from the Nokia website.^[140]

My Nokia

Nokia offers a free personalised service to its subscribers called My Nokia (located at my.nokia.com).^[141] 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 are both PC and mobile-based.^[71]

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.^[142]

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.^[143] IMAP is used as the protocol to transfer emails between the client and the server.

Controversy

NSN's provision of intercept capability to Iran

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.^[144] 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.^[145]

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.^[146]

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.^[147]

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.^[148] 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.^[149] The law was enacted, but with strict requirements for implementation of its provisions. As of 2010, the law has become a dead letter; no corporation has implemented it. The Finnish media dubbed the name Lex Nokia for this law, named after the Finnish copyright law (the so-called Lex Karpela) a few years back.

Nokia–Apple patent dispute

In October 2009, Nokia filed a lawsuit against Apple Inc. in the U.S. District Court of Delaware citing Apple infringed on 10 of its patents related to wireless communication including data transfer.^[150] Apple was quick to respond with a countersuit filed in December 2009 accusing Nokia of 11 patent infringements. Apple’s General Counsel, Bruce Sewell went a step further by stating, "Other companies must compete with us by inventing their own technologies, not just by stealing ours." This resulted in an ugly spat between the two telecom majors with Nokia filing another suit, this time with the U.S. International Trade Commission (ITC), alleging Apple of infringing its patents in "virtually all of its mobile phones, portable music players, and computers."^[151] Nokia went on to ask the court to bar all U.S. imports of the Apple products including the iPhone, Mac and the iPod. Apple countersued by filing a complaint with the ITC in January 2010, the details of which are yet to be confirmed.^[150]

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. Nokia tops Greenpeace’s Guide to Greener Electronics of May 2010 that ranks 18 electronics manufacturers according to their policies on toxic chemicals, recycling and climate change. ^[152]

All of Nokia’s mobile phones are free of toxic polyvinyl chloride (PVC) since the end of 2005 and free of brominated flame retardants (BFRs) since 2010. ^[153]

Nokia’s voluntary take-back programme to recycle old mobile phones spans 84 countries with almost 5,000 collection points. ^[154] However, the recycling rate of Nokia phones was only 3–5% in 2008, according to a global consumer survey released by Nokia.^[155] The majority of old mobile phones are simply lying in drawers at home and very few old devices, about 4%, are being thrown into landfill and not recycled.^[155]

All of Nokia’s new models of chargers meet or exceed the Energy Star requirements. ^[156] Nokia aims to reduce its carbon dioxide emissions by at least 18 percent in 2010 from a baseline year of 2006 and cover 50 percent of its energy needs through renewable energy sources. ^[157] Greenpeace is challenging the company to use its influence at the political level as number 85 on the Fortune 500 to advocate for climate legislation and call for global greenhouse gas emissions to peak by 2015. ^[158]

Nokia is researching the use of recycled plastics in its products, which are currently used only in packaging but not yet in mobile phones.^[159]

Since 2001, Nokia has provided eco declarations of all its products and since May 2010 provides Eco profiles for all its new products.^[160] In an effort to further reduce their environmental impact in the future, Nokia released a new phone concept, Remade, in February 2008.^[161] The phone has been constructed of solely recyclable materials.^[161] The outer part of the phone is made from recycled materials such as aluminium cans, plastic bottles, and used car tires.^[162] 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:^[163]

• Aalto University School of Science and Technology, Finland
• École Polytechnique Fédérale de Lausanne, Switzerland
• ETH Zurich, Switzerland
• 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

See also

Lists

• List of Nokia products
• List of acquisitions by Nokia

General

• Nokia Ovi Suite – Nokia's next generation phone suite software.
• Nokia PC Suite − A software package, slated to be replaced by Nokia Ovi Suite.
• Nokia Beta Labs − Nokia beta applications.
• Nokia Software Updater − Mobile device firmware updater.
• Forum Nokia − Developer community and support program.
• Symbian – An open source operating system for mobile devices.
• Maemo − Software and development platform and an operating system.
• MeeGo − Merger of Nokia's Maemo and Intel's Moblin projects.
• Qt − A cross-platform application development framework.
• Gnokii − A suite of programs for communicating with mobile phones.

Other

• Nokia head office − Nokia's headquarters.
• Nokia, Finland − A Finnish town.
• Nokian Tyres − A Finnish manufacturer of tires split from Nokia Corporation in 1988.
• Nokian Footwear − A Finnish manufacturer of boots split from Nokia Corporation in 1990.

References

Further reading

External links

• Official website (with complete list of regional websites)

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