Nokia

The Nokia story ...

Always adapting. Over the past 150 years, Nokia has

evolved from a riverside paper mill in

southwestern Finland to a global

telecommunications leader

connecting over 1.3 billion people.

During that time, we’ve made rubber

boots and car tires. We’ve generated electricity. We’ve even manufactured

TVs. Changing with the times,

disrupting the status quo – it’s what

we’ve always done. And we fully

intend to keep doing it. The story so far. In 1865, mining engineer Fredrik

Idestam sets up his first wood pulp

mill at the Tammerkoski Rapids in

Southwestern Finland. A few years

later he opens a second mill on the

banks of the Nokianvirta river, which inspires him to name his company

Nokia Ab in 1871. How apt that Nokia begins by making paper – one of

the most influential communications technologies in history. The

galoshes revolution. OK, so it’s not exactly a revolution. But

in 1898, Eduard Polón founds the

Finnish Rubber Works, which later

becomes Nokia’s rubber business,

making everything from galoshes to

tires. Nokia rubber boots become a bona

fide design classic, still on sale to this

day – though we no longer make

them. Electronics go boom. In 1912, Arvid Wickström sets up the

Finnish Cable Works, the foundation of Nokia’s cable and electronics

business. By the 1960s, Finnish Cable Works –

already working closely with Nokia Ab and the Finnish Rubber Works –

starts branching out into electronics.

In 1962, it makes its first electronic

device in-house: a pulse analyzer for

use in nuclear power plants. In 1963, it starts developing radio

telephones for the army and

emergency services – Nokia’s first

foray into telecommunications. In

time, the company’s MikroMikko

becomes the best known computer brand in Finland. And by 1987, Nokia

is the third largest TV manufacturer in

Europe. Three become one. Having been jointly owned since

1922, Nokia Ab, Finnish Cable Works and Finnish Rubber Works officially

merge in 1967. The new Nokia Corporation has five businesses:

rubber, cable, forestry, electronics

and power generation. But as the

1980s come into view, it’s an entirely

new industry that makes Nokia a household name around the world. By

the late 1970s and early 1980s it

seems everything – from Tom

Selleck’s mustache to JR Ewing’s list of enemies – is seriously big. And as the

mobile communications revolution

starts to gather momentum, the early

handsets continue the trend. The new Nokia Corporation is ideally

placed to take a pioneering role in

this new industry, leading the way

with some iconic – and by today’s

standards, very large – products. The mobile era begins. Nokia sets

the ball rolling in 1979,

creating radio telephone company

Mobira Oy as a joint venture with

leading Finnish TV maker Salora. Then

in 1981, the Nordic Mobile Telephone

(NMT) service, the world’s first international cellular network and the

first to allow international roaming, is

launched. The NMT standard catches on fast and

the mobile phone industry begins to

expand rapidly. In 1982, Nokia introduces the first car phone – the

Mobira Senator – to the network. That

same year, the Nokia DX200, the company’s first digital telephone

switch, goes into operation. Good enough for Gorbachev. In 1984, Nokia

launches the Mobira Talkman portable car phone.

Resembling a military field telephone,

it’s a fairly cumbersome piece of kit – but it’s a start. Then in

1987, Nokia introduces the Mobira Cityman, the first handheld

mobile phone for NMT networks.

Despite weighing in at 800 grams and

a price tag of 24,000 Finnish Marks (around EUR 4,560), it goes on to

become a classic. The Cityman even

earns a nickname, the “Gorba”, after

Soviet leader Mikhail Gorbachev is

pictured using one to make a call

from Helsinki to his communications minister in Moscow. Over the next

decade, millions of consumers worldwide enjoy their

very own Gorbachev moment as the

mobile revolution takes hold. In 1987, GSM (Global System for

Mobile communications) is adopted as

the European standard for digital

mobile technology. With its high-

quality voice calls, international

roaming and support for text messages, GSM ignites a global mobile

revolution. As a key player in developing this

new technology, Nokia is able to take full advantage. A new direction.

On July 1, 1991, Finnish Prime Minister

Harri Holkeri makes the world’s first

GSM call, using Nokia equipment. And in 1992, Nokia launches its first

digital handheld GSM phone, the Nokia 1011. That same year, new Nokia

President and CEO Jorma Ollila makes a crucial

strategic decision: to focus exclusively

on manufacturing mobile phones and

telecommunications systems. Nokia’s

rubber, cable and consumer

electronics divisions are gradually sold off. Name that tune. In 1994,

Nokia launches the 2100 series, the first phones to feature the Nokia

Tune ringtone. Based on Gran

Vals, a classical guitar piece

composed by Francisco Tarrega in the

19th century, it is probably one of the most frequently played pieces

of music in the world. The Nokia 2100 series goes on to sell 20

million

phones worldwide. Nokia’s target

was 400,000. 1994 also sees the world’s first

satellite call, made using a Nokia GSM handset. Hear Gran Vals, the

inspiration for the Nokia Tune. Listen now Snake bites. In 1997,

everybody knows their

Snake high score. An instant classic,

the addictive game is launched on the Nokia 6110, and by 2010 its

successors are available on an

estimated 350 million mobile phones. On top of the world. By 1998,

Nokia is the world leader in mobile phones. The strategic decision

to focus on telecommunications, plus

the early investment in GSM, has paid

off. Between 1996 and 2001, Nokia’s

turnover increases almost fivefold

from EUR 6.5 billion to EUR 31 billion. As the new millennium dawns,

everything changes. New technology

enables the Internet to go mobile,

opening up a world of possibilities for mobile users. No longer are phones

just for phone calls. Multitasking mobiles. In 1999, Nokia launches

the Nokia 7110, a phone capable of rudimentary web-based functions,

including email. Then in November

2001 Nokia launches its first phone with a built-in camera, the Nokia

7650, and in September 2002 its first

video capture phone, the Nokia 3650. However, it’s when Nokia launches

its first 3G phone (third generation), the Nokia 6650, in 2002 that

things really

take off. With 3G technology, phones

can now be used to browse the web,

download music, watch TV on the

move, and more. Mobiles will never be the same again. One billion and

counting. In 2005, Nokia sells its billionth phone – a Nokia 1100 – in

Nigeria, and global mobile phone

subscriptions pass 2 billion. Two

years later, Nokia is recognised as the 5th most valued brand in the

world. Things have come a long way since

Fredrik Idestam opened his paper

mill. Building networks for the future. In 2007, Nokia combined its

telecoms infrastructure operations with those of Siemens to form a

joint venture

named Nokia Siemens Networks. NSN grows to become a leading global

provider of telecommunications infrastructure, with a focus on

offering innovative mobile

broadband technology and services.

In 2013, Nokia acquires Siemens’ 50% stake in NSN, which becomes Nokia

Solutions and Networks, a

wholly-owned subsidiary of Nokia. Putting the world on the map. 2008

marks an important milestone

for Nokia, as the company acquires NAVTEQ, the US-based maker of

digital mapping and navigational

software. Nokia, which had already been investing in mapping for many

years, was now even more serious

about providing people with the very

best in location-based services. Fast

forward to the present day, and Nokia is now offering location-based

services through the HERE brand. Treading lightly. For years, Nokia

has been working to make its business practices and

products as environmentally and

socially responsible as possible – from

creating eco-friendly handsets and

establishing phone recycling schemes

to bringing the benefits of mobility to emerging markets. This commitment

to sustainability is recognized in a

number of prestigious rankings. A meeting of minds. In 2011, Nokia

announces it is joining forces with Microsoft to strengthen its

position in the smartphone market.

The strategic partnership sees Nokia smartphones adopt the Windows

Phone operating system and establish

an alternative ecosystem to rivals iOS

and Android. Nokia also kicks off a sequence of changes designed to

enable it to build better products,

faster. These changes include a

revitalization of Nokia’s company culture, where speed, accountability

and results are central. Nokia launches its first Windows

Phones, the Nokia Lumia 800 and the Nokia Lumia 710, in October 2011.

Fast-forward to 2013 and Nokia has a full portfolio of great Windows

Phone 8 smartphones, from the Lumia 520

through the award-winning Lumia

920 and the ground-breaking Lumia

1020, which enables photography

never seen before in a smartphone.

At the same time, the company continues to be committed to offering

affordable phones which combine

great design and an intuitive user

interface with compelling, localized

experiences. The Asha line of devices are bestsellers in numerous countries

around the globe. The next chapter. A company which has embraced

change throughout its 150-year history looks to reinvent itself once

again. In September 2013, Nokia announces that it has entered into an

agreement with Microsoft whereby

Microsoft would purchase

substantially all Devices & Services, the Nokia business which makes mobile

phones and smartphones. The

transaction is subject to approval by

Nokia's shareholders, regulatory

approvals and other closing

conditions. Building on the partnership with Nokia and the increasing

success of Nokia's Lumia smartphones, Microsoft

aims to accelerate the growth of its share and profit in mobile devices

through faster innovation, increased

synergies, and unified branding and

marketing. For Nokia, the transaction is expected to be significantly

accretive to earnings, strengthen its

financial position, and provide a solid

basis for future investment in its

continuing businesses. Following the transaction, Nokia plans to focus

on its three established

businesses, each of which is a leader in enabling mobility in its respective

market segment: NSN, a leader in

network infrastructure and services;

HERE, a leader in mapping and

location services; and Advanced

Technologies, a leader in technology development and licensing.