Nokia who is the manufacturer. Nokia history

Until recently, Nokia smartphones were among the market leaders. Currently, gadgets from other companies have supplanted them, but simple dialers from this brand remain popular. Who is the producer country of "Nokia" and why is there such a trend today?

How did it all start?

Nokia's history dates back to 1865, when mining engineer Fredrik Idestam founded a pulp mill in Tampere, southwestern Finland (part of the Russian Empire). In 1868, he built a second mill near the city of Nokia, which had the best hydropower resources. In 1871, with the help of a close friend and statesman Leo Mechelin, Idestam renamed and turned his company into a joint stock company, thereby creating Nokia Ab.

Towards the end of the 19th century, Mechelin was looking to expand its electricity business. In 1896, he became chairman of the company (he held this position from 1898 to 1914) and added power generation to the core business.

In the late 1910s, shortly after World War I, Nokia was approaching bankruptcy. As a result, it was bought out by Suomen Gummitehdas, which had a large rubber factory located nearby. This was an important event in the history of the corporation. Even today, you can hear the question of which country is the manufacturer of Nokia tires. In 1922, the same company acquired the Suomen Kaapelitehdas plant, which produced telephone, telegraph and electrical cables, as well as installed such communications.

At that time, three companies - Nokia Ab, Suomen Gummitehdas, Suomen Kaapelitehdas - did not officially merge, since the law did not allow this, but the management continued to create a successful conglomerate. The country of origin of Nokia did not actually change, and in 1967 all three firms were officially merged into the new industrial conglomerate Nokia Corporation.

The new company was involved in many industries, producing at various times paper products, car and bicycle tires, shoes (including rubber boots), cables, televisions and other consumer electronics, personal computers, power generation machines, robotics, and more. Each division had its own director, who reported to the first president of Nokia Corporation, Bjorn Westerlund. He was also responsible for the creation of the company's first electronics department in 1960, starting the rapid development of the telecommunications industry.

How did events develop further?

Finland gradually became known as the country of manufacture of the Nokia phone. The electronics section of the cable department was founded in 1960 and the production of the first electronic devices began in 1962. The first product was a pulse analyzer intended for use in nuclear power plants. After 1967, this department was registered as a special division, where the production of telecommunication equipment was started.

In the 1970s, Nokia became more active in the industry with the launch of the Nokia DX 200, a digital telephone switch. It became the basis for the functioning of network equipment. Its architecture allowed the development of various switching products in the future. In 1984, the development of data exchange for the Nordic Mobile Telephony network began.

In the 1970s, the company was split into a government and a commercial entity. In 1987, the state sold its shares to Nokia, and in 1992 the company name was changed to Nokia Telecommunications. From that moment on, Finland went down in history as the country of manufacture of the Nokia phone.

Pre-cell systems

The technologies that predate modern cellular mobile telephony systems were various standards for pre-cellular mobile radiotelephony. Since the 1960s, Nokia has been producing commercial and some military mobile radio technologies.

In 1964 Nokia developed a VHF radio station at the same time as Salora Oy. In 1966, Nokia and Salora began developing the ARP (Automotive Mobile Radiotelephone System) standard and the first commercial public mobile phone network in Finland. Thus, the Nokia company (the country of origin - Finland) became the pioneer of a new generation of communications.

Participation in NMT (1G)

In 1979, the merger of Nokia and Salora led to the creation of Mobira Oy, which began developing mobile phones for the 1G NMT (Nordic Mobile Telephony) network standard. This is how the world's first fully automatic cellular telephone system appeared in Finland, which went online in 1981. In 1982, Mobira introduced its first car phone, the NMT-450.

Nokia bought all of Salora Oy's shares in 1984 and changed the name of the telecommunications business to Nokia-Mobira Oy. The Mobira Talkman, released in 1984, was one of the world's first mobile phones.

In 1987, Nokia introduced its first mobile phone, the Mobira Cityman 900, designed for NMT-900 networks (which, compared to the NMT-450, offered a better signal but shorter range). This device weighed only 800 grams including the battery and was priced at 24,000 Finnish marks (approximately 7,300 euros in modern terms). Despite the high price tag, the first phones were almost snatched from sellers' hands. The mobile phone was originally a VIP product and a status symbol. At that time, the question of which country of manufacture "Nokia" did not even arise. Everything was produced only in Finland.

Participation in GSM (2G)

Then Nokia was a key developer of the GSM (2G) system, which could transmit data as well as carry out voice traffic. NMT (Nordic Mobile Telephony) is the world's first mobile telephony standard for international roaming, which was introduced by the producer country of Nokia in 1987 as a new European standard in this area.

Nokia then transferred its first GSM network to the Finnish operator Radiolinja in 1989. The first commercial GSM call in the world was made on 1 July 1991 in Helsinki via a network supplied by Nokia, then Prime Minister of Finland Harri Holkeri.

In 1992, the first GSM phone Nokia 1011 was launched on the market. The number of this model refers to the release date - November 10th. The Nokia 1011 has not yet used the company's signature ringtone. Nokia's trademark melody was introduced as a ring tone in 1994 in the Nokia 2100.

High quality GSM voice calls, easy international roaming, and support for services such as text messaging (SMS) have laid the foundation for a worldwide boom in mobile phone use. GSM began to dominate mobile telephony in the 1990s, and by mid-2008 there were about three billion subscribers, of which there were more than 700 mobile operators in 218 countries and territories.

Further development

The company released the Nokia 3310 in 2000. This phone became one of the most popular devices at the time. Only Finland was the country of manufacture of "Nokia-3310".

This record was soon broken by the Nokia 1100, released in 2003. More than 200 million copies have been sold in total. This model is the best-selling mobile phone in the world in the entire history of the existence of such devices. The introduction of this phone has boosted the company's popularity in emerging markets.

Nokia developers were among the first to recognize the possibility of combining a game console and a mobile phone with the N-Gage. It was a gamer's phone that cost twice the standard device.

The device ran on Series 40, a platform used primarily for Java applications. At the time, it was the world's most popular mobile phone software. Nokia then acquired Smarterphone, a company that makes the Smarterphone operating system for low-cost phones, and merged that operating system with the Series 40 to create the Asha platform.

The Asha 501 was the first phone to run the new OS. Series 40 devices were discontinued at the end of 2014.

Symbian OS

Symbian was Nokia's main operating system for smartphones until 2011. Popular devices based on this platform include the following:

  • 7650 - the first smartphone on the S60;
  • Nokia N-Gage - the first gaming-focused smartphone;
  • 6600 - the first Symbian smartphone with an original design (about a million units sold);
  • 7610 - the first device with a megapixel camera;
  • The N90 is the first camera-oriented mobile phone;
  • N95 is a popular slider;
  • N82 with xenon flash;
  • E71, offering a full qwerty keyboard and premium build;
  • 5800 XpressMusic - the first full-featured smartphone;
  • N97 - phone with full contact screen and side QWERTY keyboard;
  • The X6 is the first gadget with a capacitive touchscreen;
  • The N8 is a device with a newer 12 megapixel camera and Symbian ^ 3.

Also released was the Nokia 808 PureView, which featured a record 41MP camera.

Linux devices

The first Linux devices from Nokia were the Nokia and N900 Internet Tablets, which ran on Debian-based Maemo. The Maemo project later teamed up with Intel Moblin to create MeeGo. The N9 smartphone was released before further device development changed in favor of Windows Phone.

The Nokia X family of devices running Android was Nokia's last standalone launch on a Linux-based platform. Subsequently, Nokia 8 was released, the country of origin of which remained the same, but it was a joint project of several companies. Then phones with serial numbers 6, 5, 3 and so on appeared in this line.

Reorganizations

As you can see from the above, the country of origin of "Nokia" is Finland, from the first day of the existence of production. However, the company developed further, opening its branches around the world.

Thus, on May 5, 2000, Nokia opened its mobile phone factory in Hungary. In April 2003, problems arose related to the separation of equipment from the networks. This forced the corporation to resort to various optimization techniques, including layoffs and organizational restructuring. Such measures have significantly shaken Nokia's reputation in Finland.

In March 2007, a new manufacturing country for Nokia appeared - the company signed a memorandum with the Cluj County Council in Romania to open a plant near the city of Giuku. The relocation of production from Germany to a low-wage country caused a great deal of resonance. Around the same time, Nokia moved some of its headquarters to the United States. In 2008, the company entered the mobile phone market in Japan.

In February 2012, the company announced 4,000 layoffs due to the relocation of production from Europe and Mexico to Asia. This is how additional countries-producers of Nokia smartphones appeared.

Loss of market share in smartphones

Apple's iPhone, originally released in 2007, initially felt intense competition from the popular Nokia smartphones, especially the N95. Symbian OS held a dominant (62.5%) market share.

However, with the release of the iPhone 3G in 2008, Apple's market share doubled by the end of the year, and the iPhone OS (now known as iOS) overtook Windows Mobile. Despite the fact that Nokia retained 40.8% of the market, the popularity of devices has noticeably decreased.

The N96, launched at the end of 2008, proved to be much less successful, and the 5800 XpressMusic smartphone was considered the main competitor to the iPhone 3G. However, the success of the business-oriented Nokia E71 was not enough to stem the decline in market share. On June 24, 2008, Nokia bought the Symbian operating system, and a year later opened the source code.

In early 2009, Nokia launched the N97, a touchscreen device with a landscape QWERTY keyboard focused on social media. It was a commercial success despite mixed reviews. The main competitor to the N97 was the iPhone 3GS. Several devices were also released in 2009 and received a positive response (including the Nokia E52). However, Symbian's market share declined from 52.4% in the fourth quarter of 2008 to 46.1% in 2009. So, the RIM platform (later Blackberry) increased its market share during this period from 16.6% to 19.9%, and Apple - from 8.2% to 14.4%. The Android niche grew at the same time to 3.9%.

Difficult period until 2011

Competitive pressure on Nokia increased dramatically in 2010 as Android and iOS continued to evolve. Other Symbian device makers, including Samsung Electronics and Sony Ericsson, began making Android-based gadgets, and by mid-2010, Nokia had become the only OEM outside of Japan. The company replaced the S60 with Symbian ^ 3, but it still didn't gain popularity.

By the fourth quarter of 2010, Symbian's market share had dropped to 32%, while the Android niche had grown to 30%. Despite such losses, manufacturing remained profitable, and smartphone sales increased every quarter throughout 2010. Countries-producers of "Nokia" remained a lot of developing countries in Asia.

In February 2010, Nokia and Intel announced MeeGo, merging their Linux-based Maemo and Moblin projects. The joint activity was aimed at creating a single mobile operating system for a wide range of devices, including tablets and smartphones. In particular, Nokia planned to use MeeGo as the successor to Symbian on its future phones. However, only the Nokia N9 was released.

Microsoft partnership

In February 2011, representatives from Nokia and Microsoft jointly announced a major business partnership between the two companies. Its essence boiled down to using Windows Phone as the main platform for Nokia smartphones, replacing Symbian and MeeGo. The collaboration also included the use of Bing as a search engine on Nokia devices, as well as the integration of Nokia Maps into Microsoft's own mapping services.

The company announced that there will be only one MeeGo-powered device in 2011. On October 26, 2011, Nokia unveiled its first Windows Phone 7 devices, the Lumia 710 and Lumia 800 line. Following this announcement, the company's share price fell by about 14%. Sales of Nokia smartphones, which had previously increased, collapsed.

From the beginning of 2011 to 2013, Nokia's rating in the sale of devices fell from first to tenth place. In this regard, the corporation reported a loss of 368 million euros in the second quarter of 2011, while in the same period in 2010 it made a profit of 227 million.

In September 2011, Nokia announced that it would cut another 3,500 jobs worldwide, including the closure of its factory in Romania.

Since Nokia was the largest manufacturer of mobile phones and smartphones in the world, it was assumed that the use of Windows Phone would help regain its former influence. However, the company was unable to compete with the rapidly growing Apple. In 2012, there were a number of layoffs and layoffs, and the number of producing countries for Nokia has become much smaller. In addition, the company closed production and research sites in Finland, Germany and Canada due to continued losses, and the share price fell to its lowest level since 1996.

Further collaboration

Nokia's CEO acknowledged that the company's failure to anticipate rapid changes in the mobile phone industry has become one of the main causes of the problems. In May 2013, Nokia released the Asha platform for low-cost smartphones. In the same month, the company announced its partnership with the world's largest cellular operator China Mobile, resulting in the Lumia 920 and Lumia 920T, an exclusive Chinese variant.

Subsequently, Microsoft acquired the Asha, X and Lumia brands, but received only a limited license for the Nokia brand (until December 2015). Subsequently, smartphones of this line came out under the Microsoft brand. So, the USA became the country of origin of "Nokia Lumiya".

On November 17, 2014, Nokia representatives made a statement that the company plans to re-enter the consumer electronics business by licensing its own hardware projects and technologies to third-party manufacturers. The next day, Nokia unveiled Foxconn's Android-powered tablet N1 as its first product after the Microsoft sale.

On April 14, 2015, the corporation confirmed that it is in talks with the French company Alcatel-Lucent regarding a possible merger. The next day, Nokia officially announced that it had agreed to buy Alcatel-Lucent for 15.6 billion euros. The acquisition aimed to create a stronger competitor for Ericsson and Huawei, which the combined companies surpassed in terms of total revenues in 2014.

In support of the initiative, the CEO of Nokia said the merger would provide more opportunities for the upcoming 5G development. The merger with Alcatel was formalized on January 14, 2016.

New Finnish models before Nokia 3

The country of origin of devices of this brand may be located in Asia at the present time. At the same time, in the course of numerous reorganizations, production returned to Finland.

On May 18, 2016, it was reported that Microsoft sold FIH Mobile's Nokia branded division to Foxconn and the new company HMD in Finland. They are supposed to work together to create Nokia devices. Nokia will provide the brand and patent licensing to HMD and will take a seat on the company's board of directors.

In January 2017, the Nokia 6 was released, the first jointly developed Android smartphone. The country of manufacture of "Nokia 6" was Finland. Soon there were more phones labeled 5, 3 and 6 art. The production of these newest models is based there, and the country of origin of the Nokia 5 is evident.

The history of Nokia is one of the most incredible business sagas of the 90s of the last century. As BusinessWeek wrote, in the early 90s, the Finnish conglomerate was worried about problems that were very far from cellular communications: then sales began to decline sharply in the Soviet Union, which was on the verge of collapse ... of toilet paper. And by the end of the millennium, the same Finns, having reoriented to the production of cell phones, surpassed Ericsson and Motorola in a new market for themselves. Nokia quickly became one of the leading players in the global telecommunications market, as well as one of the richest European companies. But all in order ...
Came out of the woods


Nokia's history dates back to 1865. On May 12, 1865, the Finnish mining engineer Fredrik Idestam received permission to build a wood pulp mill near the Nokia River. This was the beginning of the future Nokia Corporation. It was during these years that the rapid growth of industry took place. Industrialization, the need for paper and cardboard for growing cities and offices grew every day. And now, on the site of the mill-mill, a pulp and paper mill has grown. Over time, the Nokia combine attracted a large number of workers, so that soon a city of the same name was formed around it - Nokia

The enterprise grew from a national scale, Nokia paper began to be supplied first to Russia, then to England, France, and even China.

In the late 1860s, the demand for paper products in Finland exceeded the volume of domestic production many times, due to which the import of raw materials from Russia and Sweden increased. Nokia Corporation (Nokia Aktiebolag) was founded in February 1871. The firm has confidently conquered the markets of Denmark, Germany, Russia, England, Poland and France. By the way, business people from St. Petersburg played an important role in Nokia's entry into the international arena.


1870 g.
Coalition of three

Meanwhile, in the United States, the rubber fever of the early 1830s ended as suddenly as it began. Many investors have lost millions of dollars. But bankrupt Philadelphia-based equipment maker Charles Goodyear continued to experiment with rubber. In February 1839, he discovered the phenomenon of vulcanization. At the same time, he created a waterproof rubber that allowed this material to be used in a wide variety of conditions. In 1898, Frank Seiberling founded the Goodyear Tire and Rubber Company and bought the first plant for it. Ten years later, Goodyear became the world's largest rubber company.

In Finland, rubber goods appeared at the end of the 19th century. The first products were shoes and various items made of rubberized fabric. At first they were a luxury, but very quickly raincoats and galoshes gained popularity in cities and countryside. Rubber products have become an accessory not only for the consumer, but also for the business market. In connection with industrialization, there was a demand for various equipment, which meant the need for all kinds of rubber products. In Finland, the main manufacturer of such products was Finnish Rubber Works (FRW). When FRW decided to move its production from Helsinki to the countryside, it settled on a site next to Nokia. The ability to buy low-cost electricity from Nokia became decisive - the river, near which the plant was located, served not only as a decoration of the landscape, but also was a source of cheap electricity.


In 1912, a company was opened in the center of Helsinki, later called Finnish Cable Works. The growing demand for electricity transmission, as well as the rapid development of telegraph and telephone networks, ensured the rapid growth of the company. Looking ahead, it should be noted that after the end of the Second World War, the company was practically a monopoly that owned the absolute majority of Finnish cable manufacturers.

In 1920, the three firms, Nokia Corporation, Finnish Rubber Works, and Finnish Cable Works, entered into a coalition to form the Nokia Group. Participation in this industrial conglomerate involved Nokia's opposition to social, political, and economic events: both the Roaring Twenties and the Great depression, and the invasion of the Soviet Union, and subsequent wars, and the payment of reparations to Moscow.

Although Nokia lost its corporate autonomy, its name soon became a common foundation for the three firms, and during these years FRW began to use the name “Nokia” as its brand. True, soon the third of the companies, Finnish Cable Works (FCW), lured Nokia into a new sector for it - the construction of power plants. In the 1920s and 1930s, Nokia was already the leader in all areas of its activities. It was diversification that helped the company to go through difficult economic times almost painlessly: when some sector of the economy was in decline, Nokia survived at the expense of enterprises in other industries.


Nokia began operations in the Soviet Union in the 60s. In 1966, the merger of three enterprises - Nokia, FRW and FRC began and in 1967 was finally formalized. Oy Nokia Ab was an industrial conglomerate operating in four main areas: forestry, rubber, cables and electronics. Older businesses, especially cables, continued to drive Nokia's profitability. Some Finnish observers believe the control system was taken from a cable factory; and the money was brought in by the rubber industry. And the electronics division helped revive Nokia's competitiveness at the company's next stage of development.
Nokia and mobile communications

Back in the 60s, Finnish Cable Works President Björn Westerlund establishes an electronics department that conducts research in the field of semiconductors. The main staff of the department are employees of universities and colleges with whom Westerlund has long maintained a good relationship. The head of the department, Kurt Wickstedt, who called himself "obsessed with numbers", perfectly understood all the prospects for the development of electronic communications and skillfully directed the efforts of developers in these priority areas. The moods that were in the air at that time could be characterized by the words "everything is possible and everything needs to be tried."

Nokia, 1960

In 1963, the first radiotelephone was developed, and in 1965, a data modem. Nevertheless, most telephone exchanges at that time had electromechanical switching devices and no one even thought about the possible "digitalization" of their equipment. Despite the similar conservatism that prevailed in this area at that time, Nokia nevertheless took on the development of a digital switch based on pulse code modulation (PCM). In 1969, it was the first to produce PCM transmitting equipment that meets CCITT (International Consultative Committee on Telegraph and Telephone) standards. The transition to the digital telecommunications standard became one of the most important strategic decisions for the company, which was confirmed in the early 70s by the release of the DX 200 switch. Equipped at that time with a high-level computer language and Intel microprocessors, it turned out to be so successful that to this day the ideas embedded in it are the basis for the telecommunications infrastructure of the company.


At the same time, new legislation allowed, following the example of Sweden, to install mobile phones in cars and connect them to the public network. As Nokia's main strategy in the 1980s was to expand rapidly across the board, the new prospects pushed Nokia to take decisive action. And the result was not long in coming: in 1981, a cellular network was created that covered Sweden and Finland and was named Nordic Mobile Telephony (NMT). Later, it included other countries both in Europe and beyond. The system was based on Nokia technologies. The mobile phone industry began to develop rapidly. Introduced in 1981, NMT became the first widespread cellular standard

In 1987, when all manufactured mobile phones were quite heavy and had large dimensions, Nokia released one of the lightest and most portable mobile phones. This allowed us to win back a significant part of the market.

In connection with the gradual unification of European markets at the end of the 80s, it became necessary to develop a unified digital standard for mobile communications, later called GSM (Global System for Mobile Communications).

In 1989, Nokia and two Finnish telecommunications operators formed an alliance to establish the first GSM network. In order not to lose ground in the competition with Telecom Finland, which had a long-term, state-backed monopoly on long-distance telephony, analog mobile service providers Helsinki Telephone Corporation and Tampere Telephone Company formed Radiolinja. The firm bought $ 50 million worth of infrastructure from Nokia, even though it did not have a license for the new network.

Jorma Ollila, invited to Nokia Kari Kairamo, in 1990 became the head of the company's mobile phone division. There was a lot of talk about the new project, everything arose from doubts: from the fundamental need for the existence of a network to technological issues. Still, the Nokia team believed in digital communications and continued to work.

On July 1, 1991, the very first call via the commercial GSM network was made by the Prime Minister of Finland - on a Nokia phone. The success of the project impressed the company's board of directors, and a year later Ollila was named CEO of Nokia. Jorma Ollila still holds this position and the post of chairman.

Since 1996, telecommunications have become Nokia's core business. The Finns were not risking in vain. After all, when Nokia invested its resources in GSM, it was a moderately successful company from a small country that challenged an already solid infrastructure, in which billions of dollars were invested, and a widely accepted standard. Soon, the company concludes agreements for the provision of GSM networks to 9 more European countries. By August 1997, Nokia had delivered GSM systems to 59 operators in 31 countries.

Number of mobile and landline telephones in Finland 1990-1998

It must be said that by this time Finland was seized by the deepest decline in production. And despite the fact that in the 80s Nokia became the third TV manufacturer in Europe, as well as the company's satellite receivers and a division that produces car tires are becoming very popular, especially considering the consistently high quality of the entire range of products on offer, Nokia had to take a risky choice. In May 1992, the head of the company, Jorma Ollila, decides to reduce all other departments and concentrate scientific and production capacities on telecommunications. Today, when Nokia is the world leader in mobile communications and telecommunications, we can truly appreciate the correctness of this decision.
Success secrets

It was when the company got serious about making mobile phones and other telecommunications products that it entered international markets. As a result, in the late 90s Nokia became the leader in the digital communications technology market.

In a short time, thanks to its ability to be sensitive to frequent market changes and instantly adopt the latest developments and technologies, the company has achieved global success. It is through a competent and thoughtful approach, as well as the right decisions - both in the field of technology, and in the field of management and personnel policy - that Nokia has become a world-class mega-company. For some 6 years, this company has made a leap to world fame.

Jorma Ollila took over as head of Nokia just when she needed a breath of fresh air. And the company soon began to skyrocket its turnover. By 1997, Nokia was a manufacturer of mobile phones for almost all major digital standards: GSM 900, GSM 1800, GSM 1900, TDMA, CDMA and Japan Digital. Thanks to such vast opportunities, the company was able to quickly strengthen its position in Europe and Asia.

Already in 1998, it announced a 70% increase in profits (210 billion euros), while its main competitors Ericsson and Motorola limited themselves to reports of a decrease in production rates. The demand for mobile phones continued to grow, and so did Nokia's market share. In 1999, the company won 27% of the mobile phone market, with Motorola, which was second, lagging behind it by as much as 10%. Today Nokia is still the leader in the mobile phone market. What explains this rise? Let's try to understand the reasons for this success.

History. It was distinguished from ordinary Finnish companies not only by the desire for growth and innovation, but also by the effective expansion of the scope of activities. In addition, Nokia distinguished itself by being the only one in its country to pursue a consistent policy of creating a complete self-sufficiency chain: from production and development of new products to marketing, brand promotion, sales organization and provision of related services.

Name. First of all, Nokia's management decided that it needed its own brand for successful market promotion - the company managed to foresee that cell phones would soon become a consumer product (before that Nokia products were sold under the brands of mobile operators). She managed to solve the task in full - today in the list of the most popular brands, the Nokia brand occupies the eleventh place, between Marlboro (10th place) and Mercedes (12th).


Slogan and logo adopted in 1993

Innovation. One of the company's strategic goals has always been continuous renewal, which manifested itself in skillful and constant segmentation, branding and design. Like Procter & Gamble, Nokia has periodically released new products in various categories to continually dominate the market. Like Coca-Cola, Nokia gradually became a ubiquitous brand, only it did it much faster.

Technologies. Nokia pays a lot of attention and invests heavily in technology development. The main breakthrough, according to a number of experts, was an advanced and convenient menu system. It was she, as many believe, that gave impetus to the expansion of the functionality of the phone and the gradual transformation of it not just into a communication device, but rather into an information device.

When many high-tech corporations in the USA and Canada focused exclusively on computer information technologies, European and Japanese companies were seriously engaged in mobile telecommunications and wireless technologies. And Nokia was at the forefront of these "converters of the world." People want to communicate “whenever, wherever,” and Nokia is meeting that demand. Even Americans admitted that thanks to Nokia, the future of wireless communication belongs to Europe. Indicators such as the proportion of mobile phone owners among the population and the coverage of the territory with cellular communications are much higher in Europe than in the United States. And that's not all: the line between technologies is now blurring - they are merging into a single whole, and mobile telecommunications devices are reigning in the very center of the wireless information society of the new century.

Design. Top-notch design is considered the hallmark of Nokia phones.


Nokia's chief designer, Frank Nuovo, believes that it is not new features and an intricate device that can bring greater success to mobile phones, but ease of use and a beautiful appearance. In his opinion, in the minds of people, a mobile phone is something like a watch or sunglasses. They are influenced not by the development of technology, but by fashion. Modern mobile phones of this brand are a milestone for the competitors of the company. Nokia pays great attention to phone design. The company began experimenting with phone color ten years ago, when the first color phones came out in Europe and the United States. One of the first was the Nokia 252 Art Edition. This is largely due to Ollil and his team, who gave the Finnish phones the quality that consumer psychologists call the paramount image of Nokia mobile phones - the ability to personalize each of them and thereby stand out from the consumer crowd.

Frank Nuovo's team employs about 100 designers. The iconic 8000 series is an example of first-class design. In this regard, Nokia's cooperation with the Kenzo fashion house is very indicative.

Many believe that the Nokia 8210 is a collaboration between Nokia and Kenzo fashion house. In fact, this is not entirely true: the Nokia / Kenzo agreement was focused only on promotional activities - for example, the 8210 was shown for the first time at a Kenzo fashion show. Nokia's press release: “In our business, the Nokia 8210 opens up a whole new class of products, especially when it comes to fashion trends. an ordinary telephone.

The presentation of the new phone model at the Kenzo fashion show was a new step for us in introducing a new fashion-oriented product category. Kenzo is the ideal partner with a prestigious brand to enter the fashion world.

The mobile telephony industry has already taken the lead in the global consumer electronics industry, and therefore market segmentation is becoming more pronounced. Today, almost everyone is a potential mobile phone user. Different users have different needs, different lifestyles and personal preferences. For this reason, production and marketing concepts are becoming more and more focused on the customer's lifestyle and fashion perception. It can be argued that the mobile phone is becoming an increasingly effective means of expressing individual style and taste. Kenzo, like Nokia, is a style leader.

Kenzo, like Nokia, is a globally recognized brand with global distribution and market coverage. Nokia and Kenzo have similar views on joint activities: striving for freedom, expressed individuality, youth style. We have the same idea of ​​style in terms of color, material and graphic design. "

Corporate culture. It must be said that the formation of the well-known corporate culture of Nokia took place even before the coming to the leadership of Jorma Ollila, the current leader. Many myths have been created about his predecessor, Kari Kairamo. This energetic man has served as the CEO (CEO) of Nokia since 1977. By the way, his predecessor, Björn Westerlund, who was in charge of cable production, practically endangered the well-being of Nokia, advocating a reduction in relations with the Soviet Union. Kari Kairamo immediately after his arrival built an important market balance for Nokia: now 50% of production was sent to the USSR, and another 50% to the West. This helped Nokia avoid a catastrophe during the period of major changes in our country in the early 90s. But in 1988, Kari committed suicide and left the company in a very poor state. Kairamo was a charismatic leader, sometimes his behavior was violent, abusive and scandalous. Today's generation of Nokia executives very often gets "advances" precisely because of the company's image and merit, acquired under Kairamo. He also laid down the basic principles of Nokia's corporate culture: teamwork, global scale of activities and constant professional development.

Jorma Ollila.

His successor, Jorma Ollila, was also a significant figure. It was he who, in 1991, "brought" Nokia to a new digital standard for mobile communications - GSM. And a year later, when he became CEO of the entire company, he promised to make Nokia the largest firm focused on the mobile sector of the market. Now no one will argue that Nokia is a business miracle. The basis of all, probably, was a somewhat unconventional scheme of Nokia's work, which presupposes a combination of freedom of action for its individual structures and strict financial discipline. In other words, the company has certain corporate standards, but outside of them, the divisions are free to act at their own discretion. However, if some of them have not reached certain financial indicators, and there are no prerequisites for the situation to change in the future, work in this area is curtailed.

Perhaps Ollila's success in the international financial sector played a role, allowing him to list Nokia shares on the New York Stock Exchange. The much talked about initial investment in Nokia was actually the result of its stock appreciation. In five years, Nokia shares have risen by 2,300%, and this was the result of adherence to special financial discipline. "If the revenue from the company's core business product does not grow by 25% per year," says Jorma, "then there is no need to expect growth in the future - you need to change the product and the entire production strategy."

Despite the openness of information about the company, Jorma Ollila himself remains a mystery man for most researchers. He does not seek to flaunt his life. He only talks about technology, management and the prospects of his company. He loves to play tennis, but his playing style resembles fitness training rather than gambling. Even on the court, he is not inclined to any kind of communication "outside the game". Ollila is not only stingy with words - he is also frugal with his employees.

The Nokia executive does not litter people: he is not inclined to fire employees, even when they make serious mistakes. This is why 60,000 employees of the company are loyal to their boss. “We know mobile telecommunications better than anyone else,” they say. What is this, overconfidence? Perhaps. But Nokia is a leader, and we all have to agree with this statement. Jorma believes that his policy towards employees is justified : “People who have walked together through adversity and defeat to victory must continue to work together.” According to recent reports, Jorma Ollila will remain in office until at least 2006.
Present day

GSM technology has given impetus to the emergence of a new type of service - packet transmission of large amounts of data over wireless networks. In 1998 Nokia, Ericsson, Motorola and Psion (a British manufacturer of pocket PCs) formed the Symbian Alliance, a consortium to develop third-generation wireless technologies. Symbian's strategic goal is to expand the capabilities of data transmission in mobile networks and integrate these networks with the Internet. The main goal, as Ollila says "to put the Internet into every pocket," is to provide the Internet to every user of a mobile device.


Phone factory in Salo, Finland

Nokia is now looking to lead the development of third generation wireless services. Today the company is a leader in the manufacture of mobile phones, as well as a leading supplier of mobile, fixed and IP networks. Nokia operates in more than 140 countries and is listed on six of the world's largest stock exchanges.

Nokia had sales of 6.77 billion euros in the first quarter of 2003. Net profit amounted to 977 million euros. Today Nokia has over 250 million users worldwide. According to analysts, Nokia's share of the world market in 2003 will increase to 40 percent.


Nokia in Helsinki, Finland

More than 50,000 qualified specialists create modern Nokia mobile phones at 18 enterprises of the company in ten countries of the world.

The peculiarity of Nokia is that while developing the next model, it focuses on a certain consumer, providing him with maximum ease of use. Today on the market there are models for people actively involved in sports, leading a business or secular lifestyle in the categories: Basic (2xxx), Expression (3xxx), Active (5xxx), Classic (6xxx), Fashion (7xxx) and Premium (8xxx) ... They differ in their respective design and feature set.

Nokia has been in Russia since the spring of 1997, when a Russian local company, ZAO NOKIA, was established with its head office in Moscow and a branch in St. Petersburg. The main divisions of Nokia are “profile” structures: Nokia Telecommunications and Nokia Mobile Phones. In the fall of 1999, Nokia Telecommunications was renamed Nokia Networks.

Currently, two divisions are active in the Russian market: Nokia Mobile Phones, which promotes Nokia mobile phone models on the Russian market and supports dealers in Russia and the CIS, and Nokia Networks, which provides telecom operators with comprehensive solutions in the field of mobile and fixed communication networks. , personal radio communications and advanced IP technologies.

By 2003 Nokia had opened three branded communication shops in Moscow, three in St. Petersburg and one in Chelyabinsk.

The Russian branch of the company employs more than fifty people, including specialists in telecommunications technologies and marketing research, engineers and adjusters.

Nokia has been actively working on the Belarusian market since the launch of the first cellular network, i.e. for about 10 years.

On June 17, 2003, a Nokia branded store was opened on the basis of the Newland showroom.
Milestones in Nokia's history

1865: Nokia's beginnings in the woodworking industry - Fredrik Idestam's factory on the Nokia River, southern Finland.

1917: Nokia joins a coalition of three companies and expands into rubber products and electrical cables.

1967: Nokia merges with The Finnish Rubber Works and The Finnish Cable Works. Formation of Nokia Corporation.

1973: Nokia's most popular rubber boot, Kontio, comes into production in a variety of colors and for all ages.

1975: The MikriMikki 3 computer is announced.

1977: Kari H. Kairamo becomes CEO of Nokia Corporation, marking Nokia's transformation into an electronics giant.

1979: The birth of Nokia mobile phones.

1981: The birth of Nokia Telecommunications.

1984: Nokia introduces the world's first car NMT telephone and starts exporting to the Soviet Union.

1986: Nokia introduces the NMT cell phone. The Board of Directors has split Nokia Electronics into Nokia Information Systems, Mobile Phones and Nokia Telecommunications.

1987: Nokia introduces the world's first NMT phone that fits in your pocket :). Operators of 13 European countries sign an agreement on joint construction and promotion of a GSM network.

1991: First commercial call of GSM standard - made in Finland using Nokia equipment.

1992: Jorma Ollila became General Manager

1992: Nokia introduces the first handheld GSM Nokia 101 handheld phone.

1993: Nokia adopts the "Connecting people" motto, showing Nokia's contributions to wireless technology.

1994: Nokia becomes the first European manufacturer to ship mobile phones to Japan. The 2100 series was born. About 20 million of these phones have been sold worldwide.

1995: Nokia introduces the smallest base station for mobile GSM / DCS networks, Nokia PrimeSite.

1996: Nokia introduces the world's first communicator, the Nokia 9000.

1997: Nokia shifts its strategic focus to connecting mobile technologies and the Internet

1999: Nokia launches the first WAP-enabled model, the Nokia 7110.

2000: Jorma Ollila is named Executive of the Year by Industry Week. Launched Nokia 9210, the first phone model with a color screen. Nokia has split into Nokia Mobile Phones and Nokia Networks.

2001: Nokia continues to strategically evolve with a new goal of "Internet in everyone's pocket" and maintain a leading position in the 21st century.

2002: The 7650 is Nokia's first Series 60 phone with an integrated camera. The first call was made on a third-generation commercial network based on WCDMA. Nokia 6650 announced.

Have you noticed that last year we thought about Nokia smartphones more than once? And not in retrospective format, but in connection with the release of new cool smartphones. This is because the brand got a second wind.

Personally, I am glad to see the Finnish legend again, because it touched many of us. But what do you remember about Nokia? Ringtone yes "3310th"? This will not work, it's time to refresh your memory.

There have been many facts in the history of Nokia that many do not know or have forgotten. Therefore, I have prepared a list below. It's time to remember 20 legendary facts related to the development of the Finnish brand.

1. The company was founded in the 19th century

The history begins in 1865, when the mining engineer Frederic Idestam founded a small paper mill. In 1871 it was renamed Nokia Ab.

This is the Nokia logo! No kidding.

2. Nokia used to make both slippers and toilet paper

In 1967, three companies merged: Finnish Rubber Works, Finnish Cable Works merged into Nokia Ab. Moreover, Nokia was the smallest, but it was beneficial under the then legislation. The combined company had five main lines of business: rubber products, cables, electronics, wood processing and power generation.

3. They made personal computers

In the 1980s, Nokia Data's computing division was dedicated to the production of MikroMikko PCs. It was a step towards the business PC market. The first MikroMikko 1 model was released on September 29, 1981, that is, around the time of the IBM PC.


One of the models of computers in the MikroMikko series.

4. The first phones of the company were produced under the Mobira brand

In 1987, the company introduced the Mobira Cityman 900 phone, which could already be carried in the hand (weight was 760 grams). It was from this phone that Mikhail Gorbachev called the Minister of Communications in Moscow while in Finland. After this picture, many called the phone "Gorba".


Check out the size of the Mobira phone.

5. The conversation timer is not like everyone else

The talk timer on most Nokia phones was activated when a call was made, not when a conversation was started. Although smartphones with the S60 platform read off the time in a standard way - when the interlocutor picks up the handset.

6. Nokian tires are in the past of Nokia

In 1988, Nokian Renkaat was separated from the company, which since 1967 has been its "rubber" division. Since then, Nokian Renkaat has nothing to do with Nokia.

7. Nokia were co-investors with MGTS

In 1989, a joint venture with MGTS "AMT" was created, which was engaged in mobile communications, paging and servicing automatic telephone exchanges in Moscow. Subsequently, Nokia's share was sold to MGTS.

8. The first paid call by GSM phone was made from Helsinki

In 1991, the first paid call was made on a GSM cell phone. By the way, the network itself was built on equipment manufactured by Nokia. Finnish Prime Minister Harri Holkeri called from Helsinki.


The same call.

9. The famous slogan did not appear immediately

10. Nokia phones were so popular that they could not be shipped in time

The frenzied global popularity of the Finnish brand in the world led to a major logistics crisis in the mid-1990s. The devices simply did not have time to ship, the delivery times were moving - all this damaged the company's reputation. The timely replacement of the entire logistics infrastructure saved from failure.

11. Nokia ringtones made musicians popular

Standard ringtones included "The Village", "Stones" and "Close My Eyes". These are songs by the American indie rock band Plain Jane Automobile, which became popular thanks to Nokia.

12. The melody in the famous ringtone was written in 1902

Everywhere recognizable ringtone is based on the old melody of the guitar work Gran Vals, written in 1902 by the Spanish musician Francisco Tarrega.

It appeared in 1994 in the Nokia 2100 series of phones, but got its name, "Nokia tune", only in 1998, when it became associated with the phones of the Finnish brand.

13. The sound of SMS was chosen for a reason

The standard sound of Nokia devices (SMS message sound), which usually seems to the user as an unremarkable sound signal, is actually a full-meaning message. Only transmitted using Morse code. Thus, the signal is nothing more than an abbreviation for Short Message Service, recorded using the aforementioned cipher.

14. The Ascending melody is a cipher

The message is also encrypted in the "Ascending" melody. This is the same slogan of the company: “Connecting people”.

15. Nokia has long been the largest phone maker

By 1998, thanks to a focus on telecommunications and early investment in GSM, Nokia had become the largest mobile phone manufacturer in the world. The trend continued until 2007.

Forbes November 2007 Calls Nokia the King of Cell Phones

16. Apple copied technology from Nokia

In 2009, Nokia won a lawsuit with Apple for infringement of 10 patents, the developments of which were used in the first generation iPhone. As a result, Apple paid compensation to Nokia, and, judging by the recent patent agreement, is still making large royalties.

17. Nokia 3310 - the legend

Nokia 3310 has become one of the most successful models in the history of Nokia. Over the past 17 years, more than 126 million copies have been sold.

18. Nokia devices have not been made at home for a long time

All production facilities in the mobile sector are concentrated exclusively in Asia. The last mobile phone rolled off the Finnish assembly line in 2012. All AA brands now manufacture their products with the help of a workforce from Asia.

19.Microsoft bought Nokia for a song

On September 3, 2013, Microsoft announced the purchase of Nokia's mobile phone division and all related patents. The purchase price was extremely low for a corporation of this level - Nokia's business was valued at $ 5 billion, and patents cost another $ 2.18 billion.

20. The company has released tablets several times

The last attempt was in 2014, despite the sale of the mobile unit. Then the company introduced the Nokia N1 tablet.


Tablet Nokia N1.

What about Nokia now?

After moving under the wing of Microsoft, the company left the mainstream radar. But, as it turned out, only for a while.

The history of Nokia is one of the most incredible business sagas of the 90s of the last century. As BusinessWeek wrote, in the early 90s, the Finnish conglomerate was worried about problems that were very far from cellular communications: then sales began to decline sharply in the Soviet Union, which was on the verge of collapse ... of toilet paper. And by the end of the millennium, the same Finns, having reoriented to the production of cell phones, surpassed Ericsson and Motorola in a new market for themselves. Nokia quickly became one of the leading players in the global telecommunications market, as well as one of the richest European companies. But all in order ...

Came out of the woods

Nokia's history dates back to 1865. On May 12, 1865, the Finnish mining engineer Fredrik Idestam received permission to build a wood pulp mill near the Nokia River. This was the beginning of the future Nokia Corporation. It was during these years that the rapid growth of industry took place. Industrialization, the need for paper and cardboard for growing cities and offices grew every day. And now, on the site of the mill-mill, a pulp and paper mill has grown. Over time, the Nokia combine attracted a large number of workers, so that soon a city of the same name was formed around it - Nokia

The enterprise grew from a national scale, Nokia paper began to be supplied first to Russia, then to England, France, and even China.

In the late 1860s, the demand for paper products in Finland exceeded the volume of domestic production many times, due to which the import of raw materials from Russia and Sweden increased. Nokia Corporation (Nokia Aktiebolag) was founded in February 1871. The firm has confidently conquered the markets of Denmark, Germany, Russia, England, Poland and France. By the way, business people from St. Petersburg played an important role in Nokia's entry into the international arena.

Coalition of three

Meanwhile, in the United States, the rubber fever of the early 1830s ended as suddenly as it began. Many investors have lost millions of dollars. But bankrupt Philadelphia-based equipment maker Charles Goodyear continued to experiment with rubber. In February 1839, he discovered the phenomenon of vulcanization. At the same time, he created a waterproof rubber that allowed this material to be used in a wide variety of conditions. In 1898, Frank Seiberling founded the Goodyear Tire and Rubber Company and bought the first plant for it. Ten years later, Goodyear became the world's largest rubber company.

In Finland, rubber goods appeared at the end of the 19th century. The first products were shoes and various items made of rubberized fabric. At first they were a luxury, but very quickly raincoats and galoshes gained popularity in cities and countryside. Rubber products have become an accessory not only for the consumer, but also for the business market. In connection with industrialization, there was a demand for various equipment, which meant the need for all kinds of rubber products. In Finland, the main manufacturer of such products was Finnish Rubber Works (FRW). When FRW decided to move its production from Helsinki to the countryside, it settled on a site next to Nokia. The ability to buy low-cost electricity from Nokia became decisive - the river, near which the plant was located, served not only as a decoration of the landscape, but also was a source of cheap electricity.

In 1912, a company was opened in the center of Helsinki, later called Finnish Cable Works. The growing demand for electricity transmission, as well as the rapid development of telegraph and telephone networks, ensured the rapid growth of the company. Looking ahead, it should be noted that after the end of the Second World War, the company was practically a monopoly that owned the absolute majority of Finnish cable manufacturers.

In 1920, the three firms, Nokia Corporation, Finnish Rubber Works, and Finnish Cable Works, entered into a coalition to form the Nokia Group. Participation in this industrial conglomerate involved Nokia's opposition to social, political, and economic events: both the Roaring Twenties and the Great depression, and the invasion of the Soviet Union, and subsequent wars, and the payment of reparations to Moscow.

Although Nokia lost its corporate autonomy, its name soon became a common foundation for the three firms, and during these years FRW began to use the name “Nokia” as its brand. True, soon the third of the companies, Finnish Cable Works (FCW), lured Nokia into a new sector for it - the construction of power plants. In the 1920s and 1930s, Nokia was already leading in all areas of its business. It was diversification that helped the company to go through difficult economic times almost painlessly: when some sector of the economy was in decline, Nokia survived at the expense of enterprises in other industries.

Nokia began operations in the Soviet Union in the 60s. In 1966, the merger of three enterprises - Nokia, FRW and FRC began and in 1967 was finally formalized. Oy Nokia Ab was an industrial conglomerate operating in four main areas: forestry, rubber, cables and electronics. Older businesses, especially cables, continued to drive Nokia's profitability. Some Finnish observers believe the control system was taken from a cable factory; and the money was brought in by the rubber industry. And the electronics division helped revive Nokia's competitiveness at the company's next stage of development.

Nokia and mobile communications

Back in the 60s, Finnish Cable Works President Björn Westerlund establishes an electronics department that conducts research in the field of semiconductors. The main staff of the department are employees of universities and colleges with whom Westerlund has long maintained a good relationship. The head of the department, Kurt Wickstedt, who called himself "obsessed with numbers", was well aware of all the prospects for the development of electronic communications and skillfully directed the efforts of developers in these priority areas. The moods that were in the air at that time could be characterized by the words “everything is possible and everything should be tried”.

Nokia, 1960

In 1963, the first radiotelephone was developed, and in 1965, a data modem. Nevertheless, most telephone exchanges at that time had electromechanical switching devices and no one even thought about the possible “digitalization” of their equipment. Despite the similar conservatism that prevailed in this area at that time, Nokia nevertheless took on the development of a digital switch based on pulse code modulation (PCM). In 1969, it was the first to produce PCM transmitting equipment that meets CCITT (International Consultative Committee on Telegraph and Telephone) standards. The transition to the digital telecommunications standard became one of the most important strategic decisions for the company, which was confirmed in the early 70s by the release of the DX 200 switch. Equipped at that time with a high-level computer language and Intel microprocessors, it turned out to be so successful that to this day the ideas embedded in it are the basis for the telecommunications infrastructure of the company.

At the same time, new legislation allowed, following the example of Sweden, to install mobile phones in cars and connect them to the public network. As Nokia's main strategy in the 1980s was to expand rapidly across the board, the new prospects pushed Nokia to take decisive action. And the result was not long in coming: in 1981, a cellular network was created that covered Sweden and Finland and was named Nordic Mobile Telephony (NMT). Later, it included other countries both in Europe and beyond. The system was based on Nokia technologies. The mobile phone industry began to develop rapidly. Introduced in 1981, NMT became the first widespread cellular standard

In 1987, when all manufactured mobile phones were quite heavy and had large dimensions, Nokia released one of the lightest and most portable mobile phones. This allowed us to win back a significant part of the market.

In connection with the gradual unification of European markets at the end of the 80s, it became necessary to develop a unified digital standard for mobile communications, later called GSM (Global System for Mobile Communications).

In 1989, Nokia and two Finnish telecommunications operators formed an alliance to establish the first GSM network. In order not to lose ground in the competition with Telecom Finland, which had a long-term, state-backed monopoly on long-distance telephony, analog mobile service providers Helsinki Telephone Corporation and Tampere Telephone Company formed Radiolinja. The firm bought $ 50 million worth of infrastructure from Nokia, even though it did not have a license for the new network.

Jorma Ollila, invited to Nokia Kari Kairamo, in 1990 became the head of the company's mobile phone division. There was a lot of talk about the new project, everything arose from doubts: from the fundamental need for the existence of a network to technological issues. Still, the Nokia team believed in digital communications and continued to work.

On July 1, 1991, the very first call via the commercial GSM network was made by the Prime Minister of Finland - on a Nokia phone. The success of the project impressed the company's board of directors, and a year later Ollila was named CEO of Nokia. Jorma Ollila still holds this position and the post of chairman.

Since 1996, telecommunications have become Nokia's core business. The Finns were not risking in vain. After all, when Nokia invested its resources in GSM, it was a moderately successful company from a small country that challenged an already solid infrastructure, in which billions of dollars were invested, and a widely accepted standard. Soon, the company concludes agreements for the provision of GSM networks to 9 more European countries. By August 1997, Nokia had delivered GSM systems to 59 operators in 31 countries.

Number of mobile and landline telephones in Finland 1990-1998

It must be said that by this time Finland was seized by the deepest decline in production. And despite the fact that in the 80s Nokia became the third TV manufacturer in Europe, as well as the company's satellite receivers and a division that produces car tires are becoming very popular, especially considering the consistently high quality of the entire range of products on offer, Nokia had to take a risky choice. In May 1992, the head of the company, Jorma Ollila, decides to reduce all other departments and concentrate scientific and production capacities on telecommunications. Today, when Nokia is the world leader in mobile communications and telecommunications, we can truly appreciate the correctness of this decision.

Success secrets

It was when the company got serious about making mobile phones and other telecommunications products that it entered international markets. As a result, in the late 90s Nokia became the leader in the digital communications technology market.

In a short time, thanks to its ability to be sensitive to frequent market changes and instantly adopt the latest developments and technologies, the company has achieved global success. It is through a competent and thoughtful approach, as well as the right decisions - both in the field of technology, and in the field of management and personnel policy - that Nokia has become a world-class mega-company. For some 6 years, this company has made a leap to world fame.

Jorma Ollila took over as head of Nokia just when she needed a breath of fresh air. And the company soon began to skyrocket its turnover. By 1997, Nokia was a manufacturer of mobile phones for almost all major digital standards: GSM 900, GSM 1800, GSM 1900, TDMA, CDMA and Japan Digital. Thanks to such vast opportunities, the company was able to quickly strengthen its position in Europe and Asia.

Already in 1998, it announced a 70% increase in profits (210 billion euros), while its main competitors Ericsson and Motorola limited themselves to reports of a decrease in production rates. The demand for mobile phones continued to grow, and so did Nokia's market share. In 1999, the company won 27% of the mobile phone market, with Motorola, which was second, lagging behind it by as much as 10%. Today Nokia is still the leader in the mobile phone market. What explains this rise? Let's try to understand the reasons for this success.

History. It was distinguished from ordinary Finnish companies not only by the desire for growth and innovation, but also by the effective expansion of the scope of activities. In addition, Nokia distinguished itself by being the only one in its country to pursue a consistent policy of creating a complete self-sufficiency chain: from production and development of new products to marketing, brand promotion, sales organization and provision of related services.

Name. First of all, Nokia's management decided that it needed its own brand for successful market promotion - the company managed to foresee that cell phones would soon become a consumer product (before that Nokia products were sold under the brands of mobile operators). She managed to solve the problem in full - today in the list of the most popular brands, the Nokia brand occupies the eleventh place, between Marlboro (10th place) and Mercedes (12th).

Slogan and logo adopted in 1993

Innovations... One of the company's strategic goals has always been continuous renewal, which manifested itself in skillful and constant segmentation, branding and design. Like Procter & Gamble, Nokia has periodically released new products in various categories to continually dominate the market. Like Coca-Cola, Nokia gradually became a ubiquitous brand, only it did it much faster.

Technologies... Nokia pays a lot of attention and invests heavily in technology development. The main breakthrough, according to a number of experts, was an advanced and convenient menu system. It was she, as many believe, that gave impetus to the expansion of the functionality of the phone and the gradual transformation of it not just into a communication device, but rather into an information device.

When many high-tech corporations in the USA and Canada focused exclusively on computer information technologies, European and Japanese companies were seriously engaged in mobile telecommunications and wireless technologies. And Nokia was at the forefront of these “converters of the world”. People want to communicate “whenever, wherever,” and Nokia is meeting that demand. Even Americans admitted that thanks to Nokia, the future of wireless communication belongs to Europe. Indicators such as the proportion of mobile phone owners among the population and the coverage of the territory with cellular communications are much higher in Europe than in the United States. And that's not all: the line between technologies is now blurring - they are merging into a single whole, and mobile telecommunications devices are reigning in the very center of the wireless information society of the new century.

Design. Top-notch design is considered the hallmark of Nokia phones.

Nokia's chief designer, Frank Nuovo, believes that it is not new features and an intricate device that can bring greater success to mobile phones, but ease of use and a beautiful appearance. In his opinion, in the minds of people, a mobile phone is something like a watch or sunglasses. They are influenced not by the development of technology, but by fashion. Modern mobile phones of this brand are a milestone for the competitors of the company. Nokia pays great attention to phone design. The company began experimenting with phone color ten years ago, when the first color phones came out in Europe and the United States. One of the first was the Nokia 252 Art Edition. This is largely due to Ollil and his team, who have given the Finnish phones the quality that consumer psychologists call paramount in the image of Nokia mobile phones - the ability to personalize each of them and thereby stand out from the consumer crowd.

Frank Nuovo's team employs about 100 designers. The iconic 8000 series is an example of first-class design. In this regard, Nokia's cooperation with the Kenzo fashion house is very indicative.

Many believe that the Nokia 8210 is a collaboration between Nokia and Kenzo fashion house. In fact, this is not entirely true: the Nokia / Kenzo agreement was focused only on promotional activities - for example, the 8210 was shown for the first time at a Kenzo fashion show. Nokia Press Release: “ In our business, the Nokia 8210 opens up a whole new class of products, especially when it comes to a new trend in fashion. It is not intended to crowd out existing categories, rather it occupies a niche somewhere between a prestigious fashion accessory and a regular phone.

The presentation of the new phone model at the Kenzo fashion show was a new step for us in introducing a new fashion-oriented product category. Kenzo is the ideal partner with a prestigious brand to enter the fashion world.

The mobile telephony industry has already taken the lead in the global consumer electronics industry, and therefore market segmentation is becoming more pronounced. Today, almost everyone is a potential mobile phone user. Different users have different needs, different lifestyles and personal preferences. For this reason, production and marketing concepts are becoming more and more focused on the customer's lifestyle and fashion perception. It can be argued that the mobile phone is becoming an increasingly effective means of expressing individual style and taste. Kenzo, like Nokia, is a style leader.

Kenzo, like Nokia, is a globally recognized brand with global distribution and market coverage. Nokia and Kenzo have similar views on joint activities: striving for freedom, expressed individuality, youth style. We have the same idea of ​​style in terms of color, material and graphic design.“.

Corporate culture... It must be said that the formation of the well-known corporate culture of Nokia took place even before the coming to the leadership of Jorma Ollila, the current leader. Many myths have been created about his predecessor, Kari Kairamo. This energetic man has served as the CEO (CEO) of Nokia since 1977. By the way, his predecessor, Björn Westerlund, who was in charge of cable production, practically endangered the well-being of Nokia, advocating a reduction in relations with the Soviet Union. Kari Kairamo immediately after his arrival built an important market balance for Nokia: now 50% of production was sent to the USSR, and another 50% to the West. This helped Nokia avoid a catastrophe during the period of major changes in our country in the early 90s. But in 1988, Kari committed suicide and left the company in a very poor state. Kairamo was a charismatic leader, sometimes his behavior was violent, abusive and scandalous. Today's generation of Nokia executives very often gets "advances" precisely because of the company's image and merit, acquired under Kairamo. He also laid down the basic principles of Nokia's corporate culture: teamwork, global scale of activities and constant professional development.

Jorma Ollila.

His successor, Jorma Ollila, was also a significant figure. It was he who, in 1991, "brought" Nokia to a new digital standard for mobile communications - GSM. And a year later, when he became CEO of the entire company, he promised to make Nokia the largest firm focused on the mobile sector of the market. Now no one will argue that Nokia is a business miracle. The basis of all, probably, was a somewhat unconventional scheme of Nokia's work, which presupposes a combination of freedom of action for its individual structures and strict financial discipline. In other words, the company has certain corporate standards, but outside of them, the divisions are free to act at their own discretion. However, if some of them have not reached certain financial indicators, and there are no prerequisites for the situation to change in the future, work in this area is curtailed.

Perhaps Ollila's success in the international financial sector played a role, allowing him to list Nokia shares on the New York Stock Exchange. The much talked about initial investment in Nokia was actually the result of its stock appreciation. In five years, Nokia shares have risen by 2,300%, and this was the result of adherence to special financial discipline. “If the revenue from the company's core business product does not grow by 25% per year,” says Jorma, “then there is no need to expect growth in the future - you need to change the product and the entire production strategy.”

Despite the openness of information about the company, Jorma Ollila himself remains a mystery man for most researchers. He does not seek to flaunt his life. He only talks about technology, management and the prospects of his company. He loves to play tennis, but his playing style resembles fitness training rather than gambling. Even on the court, he is not inclined to any kind of communication "outside the game". Ollila is not only stingy with words - he is also frugal with his employees.

The Nokia executive does not litter people: he is not inclined to fire employees, even when they make serious mistakes. This is why 60,000 employees of the company are loyal to their boss. “We know the mobile telecommunications industry better than anyone else,” they say. What is this, self-confidence? Perhaps. But Nokia is the leader, and all of us can only agree with this statement. Jorma believes that his policy towards the company's employees is justified: “People who have walked together through adversity and defeat to victory must continue to work together.” According to recent reports, Jorma Ollila will remain in office until at least 2006.

Present day

GSM technology has given impetus to the emergence of a new type of service - packet transmission of large amounts of data over wireless networks. In 1998 Nokia, Ericsson, Motorola and Psion (a British manufacturer of pocket PCs) formed the Symbian Alliance, a consortium to develop third-generation wireless technologies. Symbian's strategic goal is to expand the capabilities of data transmission in mobile networks and integrate these networks with the Internet. The main goal, as Ollila says “to put the Internet into every pocket,” is to provide the Internet to every user of a mobile device.


Nokia in Helsinki, Finland

More than 50,000 qualified specialists create modern Nokia mobile phones at 18 enterprises of the company in ten countries of the world.

The peculiarity of Nokia is that while developing the next model, it focuses on a certain consumer, providing him with maximum ease of use. Today on the market there are models for people actively involved in sports, leading a business or secular lifestyle in the categories: Basic(2xxx), Expression(3xxx), Active(5xxx), Classic(6xxx), Fashion(7xxx) and Premium(8xxx). They differ in their respective design and feature set.

Nokia has been in Russia since the spring of 1997, when a Russian local company, ZAO NOKIA, was established with its head office in Moscow and a branch in St. Petersburg. The main divisions of Nokia are “profile” structures: Nokia Telecommunications and Nokia Mobile Phones. In the fall of 1999, Nokia Telecommunications was renamed Nokia Networks.

Currently, two divisions are active in the Russian market: Nokia Mobile Phones, which promotes Nokia mobile phone models on the Russian market and supports dealers in Russia and the CIS, and Nokia Networks, which provides telecom operators with comprehensive solutions in the field of mobile and fixed communication networks. , personal radio communications and advanced IP technologies.

By 2003 Nokia had opened three branded communication shops in Moscow, three in St. Petersburg and one in Chelyabinsk.

The Russian branch of the company employs more than fifty people, including specialists in telecommunications technologies and marketing research, engineers and adjusters.

Nokia has been actively working on the Belarusian market since the launch of the first cellular network, i.e. for about 10 years.

Milestones in Nokia's history

1865: The birth of Nokia in the woodworking industry - the emergence of Fredrik Idestam's factory on the Nokia River, southern Finland.

1917: Nokia is part of a coalition of three companies and is expanding its business to rubber products and electrical cables.

1967: Nokia teams up with The Finnish Rubber Works and The Finnish Cable Works. Formation of Nokia Corporation.

1973: Nokia's most popular rubber boot, Kontio, comes into production in a variety of colors and for all ages.

1975: MikriMikki 3 computer announced.

1977: Kari H. Kairamo becomes CEO of Nokia Corporation, marking Nokia's transformation into an electronics giant.

1979: The birth of Nokia mobile phones.

1981: The birth of Nokia Telecommunications.

1984: Nokia introduces the world's first car NMT telephone and begins export deliveries to the Soviet Union.

1986: Nokia introduces NMT cell phone. The Board of Directors has split Nokia Electronics into Nokia Information Systems, Mobile Phones and Nokia Telecommunications.

1987: Nokia presents the world's first NMT phone that fits in your pocket :). Operators of 13 European countries sign an agreement on joint construction and promotion of a GSM network.

1991: The first commercial call in GSM standard was made in Finland using Nokia equipment.

1992: Jorma Ollila became CEO

1992: Nokia introduces the first handheld GSM Nokia 101 handheld phone.

1993: Nokia adopts the motto “Connecting people”, which reflects Nokia's contribution to the development of wireless technologies.

1994: Nokia becomes the first European manufacturer to ship mobile phones to Japan. The 2100 series was born. About 20 million of these phones have been sold worldwide.

1995: Nokia introduces the smallest base station for mobile GSM / DCS networks, Nokia PrimeSite.

1996: Nokia introduces the world's first communicator, the Nokia 9000.

1997: Nokia is shifting its strategic focus to connecting mobile technology and the Internet

1999: Nokia launches first model with WAP support - Nokia 7110.

2000: Jorma Ollila has been named Leader of the Year by Industry Week Magazine. Launched Nokia 9210, the first phone model with a color screen. Nokia has split into Nokia Mobile Phones and Nokia Networks.

2001: Nokia continues to strategically evolve with a new goal of “Internet in everyone's pocket” and maintain its leading position in the 21st century.

2002 : The 7650 is Nokia's first Series 60 phone with a built-in camera. The first call was made on a third-generation commercial network based on WCDMA. Nokia 6650 announced.

In the 2000s, Nokia produced the world's most popular phones. But after the introduction of the iPhone and other touchscreen smartphones, the brand's share began to decline. By 2016, he changed ownership twice and eventually moved to the Finnish HMD Global. At the end of 2016, it announced the relaunch of the phone brand, and in May last year, the updated Nokia 3310 returned to Russia. Russia, and Nokia smartphones - to 7th place in March 2018.

- How did you decide to revive the Nokia brand? There are very different associations associated with it: there is both a history of takeoff and a history of a fall at the beginning of this decade. What exactly gave you the confidence that rebirth is possible?

- Push-button phones are a big, serious market with annual sales of about 500 million units. Our positions in this segment have always been very strong - both in the past and now. HMD Global has regained its former leadership position for the Nokia brand in just a year, and our sales in this segment continue to grow. This is the first reason for our confidence.

The second reason is confidence in Nokia's strong DNA. When we started our business, we relied on the Nokia brand, which is very popular in many countries, including Russia. We have just started working in Russia, but Nokia is already in the top 3 in the segment of push-button phones, despite the lack of serious brand support over the past few years. When choosing a new phone, people consider Nokia as a possible option, and all we have to do is offer them what we want.

We focused on the three strengths of Nokia - design, quality, reliability - and brought them to the Android platform. We promised consumers that Nokia smartphones will always have the latest version of Android OS. This means that your smartphone not only does not become obsolete over time, but also gets better, as Google constantly updates Android, adding new features to the operating system.

“You are not the only one using the Nokia brand. Is there any confusion? How many companies are now making phones under the Nokia brand?

- Nokia phones are currently produced by only one company - HMD Global. And there is Nokia, which works only in the B2B segment, develops infrastructure for communication networks and, in particular, cooperates with operators. The license for the production of phones under the Nokia brand belongs to HMD Global. But HMD Global is Nokia. HMD Global employees used to be Nokia employees. It is us who owns all the accumulated experience of working not only with phones, but also with partners. As a startup, we quickly and flexibly respond to market and partner requests. We have good connections with carriers and retailers as they have known us as Nokia employees for many years. This is what helped us quickly bring Nokia phones to all retail outlets.

Nokia is HMD Global's first main partner. Our second main partner is Google. Together with Google, we are committed to ensuring that Nokia smartphone owners have access to the latest version of Android. Our third important partner is the smartphone maker FIH Mobile. This company strives for leadership in the production of phones, and we are a constant reliable customer for it, providing a stable capacity utilization. Finally, our no less valuable partners are distributors. They know that they can count on stable supplies from our side and cooperation will be long-term.

- You recently attracted financing in the amount of $ 100 million. Who are your new investors and what will the proceeds be used for?

- Our new investors are three companies. The first is Alpha Ginko, which invests primarily in European companies. The second is Foxconn, which this time invested directly through its investment fund. Before that, we had a partnership with Foxconn, and now we have received direct investments. The third investor is an Asian investment fund. The received investments will be used to expand business in priority markets, including Russia, India and Indonesia.

- What does the shareholder structure of HMD look like?

- You have been working in the phone market for over a year. What are your sales - primarily in the smartphone segment?

“As we announced earlier, we sold 70 million units in 2017, and most of our sales came from push-button phones. Nevertheless, we managed to enter the top 5 smartphone market in 15 countries around the world. According to IDC, in the first quarter of 2018, we further strengthened our position and became one of the market leaders in 21 countries of the world. We do not disclose smartphone sales. However, according to analysts, it can be assumed that in 2017, HMD Global had sales of 10 million smartphones and 60 million push-button phones. It is important to take into account that in 2017 we started selling smartphones only in June, that is, sales lasted only six months, and not the whole year.

- Can you name the revenue for the 1st quarter of 2018?

- We have not announced these numbers yet. In 2017, HMD Global's revenue reached $ 2.13 billion, and taking into account the latest round of funding, the company's value exceeded $ 1 billion.

- Recently you presented the 2nd generation Nokia smartphones in Russia. How does it differ from the 1st?

“The goal of our first product portfolio was to cover the maximum number of price segments, and we completed this part of the strategy with the announcement of new models at the Mobile World Congress this spring. At the MWC in Barcelona, ​​we unveiled a wide range that includes both the Nokia 1, the most affordable of our phones, and the Nokia 8 Sirocco, the most expensive Nokia-branded smartphone. Our goal has been achieved - Nokia is now present in all price segments.

We have a special tool for collecting reviews of purchased phones. The feedback on the first generation of our phones is excellent.

Now we are starting the update - this time we are introducing smartphones with an 18: 9 screen, smartphones with increased chipset performance, and other innovations.

If we talk about products separately, then the new Nokia 5 focuses on modern screen format and performance. We have added solidity to the new Nokia 3 due to the use of two-tone anodizing of the body: this made it possible to distinguish this smartphone from competitors in the democratic price segment. The new Nokia 2 still has two days of battery life, but this year's model has an improved screen.

- How did HMD Global come up with the idea to release the vintage Nokia 3310 and Nokia 8110 phones?

“When HMD Global announced its intention to revive the Nokia brand, we received a lot of inquiries from consumers wanting to re-use their favorite Nokia push-button models. Such a phone allows, if desired, to disconnect from the outside world - social networks and mail - and communicate only with the closest ones. We decided to revive the most popular push-button model - Nokia 3310 - in a more attractive design - and we paid right. The push-button phone market is still huge and we don't want to let it go.

- Who buys Nokia phones?

- About 2/3 of Nokia phone buyers are people under 35 years old. We welcome customers of all ages, but our goal is to win love from the younger generation.

- Why is the business of other relaunched brands not doing very well, for example, Motorola?

- When relaunching a brand, it is important to understand the requirements of the modern consumer. It is impossible to achieve success by focusing only on past achievements. You need to creatively rethink the strengths of the brand in the past and adapt them to the interests of today's consumers. In the past, Nokia's focus has been on hardware. User experience is now at the forefront. For this reason, in particular, we use a pure Android OS as Google intended it to be.

- In the past, Nokia was loved in few places as much as in Russia. Does the Russian market have its own specifics?

- The main difference between the Russian market is the high demand for smartphones of the middle price segment. Therefore, in our sales we focused on models from Nokia 2 to Nokia 6. Russian cellular retail is changing - operators are becoming more and more active. They know their subscribers well and see how large the proportion of push-button telephone users is. It is easier for these users to migrate from older Nokia models to newer Nokia phones. This is beneficial for operators, since it allows them to increase ARPU (average monthly subscriber bill - Vedomosti).

- How actively do you cooperate with mobile operators and their retail? How warmly were you received after the restart?