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Nokia Corporation
"Traded as
Industry
Founded
Founders
Headquarters "Espoo, "Uusimaa, "Finland
Area served
Worldwide
Key people
Products "List of Nokia products
Revenue
  • Increase "23.61 billion (2016)
  • €12.499 billion (2015)
  • Decrease €-1.1 billion (2016)
  • €1.697 billion (2015)
"Profit
  • Decrease €-912 million (2016)
  • €1.194 billion (2015)
"Total assets
  • Increase €44.90 billion (2016)
  • €20.926 billion (2015)
"Total equity
  • Increase €20.975 billion (2016)
  • €10.523 billion (2015)
Number of employees
  • Decrease 101,787 (2016)
  • 114,256 (2015)
"Divisions
"Subsidiaries
Website www.nokia.com
Footnotes / references
[1] [2]

Nokia Corporation[3] ("Finnish: Nokia Oyj, Finnish pronunciation: "[ˈnokiɑ], "UK: "/ˈnɒkiə/, "US: "/ˈnkiə/), stylised as NOKIA, is a "Finnish "multinational "communications and "information technology company, founded in 1865. Nokia's headquarters are in "Espoo, "Uusimaa, in the greater "Helsinki metropolitan area.[1] In 2014, Nokia employed 61,656 people across 120 countries, did business in more than 150 countries, and reported annual revenues of around €12.73 billion.[2] Nokia is a "public limited company listed on the "Helsinki Stock Exchange and "New York Stock Exchange.[4] It is the world's 274th-largest company measured by 2013 revenues according to the "Fortune Global 500, and is a component of the "Euro Stoxx 50 "stock market index.[5][6]

The company has had various industries in its 151-year history. It was founded as a "pulp mill, but since the 1990s focuses on large-scale "telecommunications infrastructures, technology development, and design licensing.[7] Nokia is also a major contributor to the "mobile telephony industry, having assisted in the development of the "GSM and "LTE standards, and was, for a period, the largest vendor of "mobile phones in the world. Nokia's dominance also extended into the "smartphone industry through its "Symbian platform, but was eventually overshadowed by competitors. Nokia partnered with "Microsoft in 2011, agreeing to exclusively use Microsoft's "Windows Phone platform on future smartphones; its mobile phone business was eventually bought by Microsoft, in a deal totaling $7.17 billion.[8][9] Nokia's former CEO "Stephen Elop and several other executives joined the new "Microsoft Mobile subsidiary of Microsoft as part of the deal, which was completed on 25 April 2014.[10]

After the sale of its mobile phone business, Nokia began to focus more extensively on its telecommunications infrastructure business, marked by the divestiture of its "Here Maps division, its foray in "virtual reality, and the acquisitions of French telecommunications company "Alcatel-Lucent and digital health maker "Withings in 2016.[11][12] The Nokia brand has since returned to the mobile and smartphone market through "HMD Global.[13]

Contents

History[edit]

1865–1967[edit]

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Rolls of toilet paper produced by Nokia in the 1960s, Museum Centre Vapriikki, Tampere

Nokia has a very long history, dating back to 1865, when "Finnish-Swede "mining engineer "Fredrik Idestam established a "pulp mill near the town of "Tampere, Finland (then in the "Russian Empire). A second pulp mill was opened in 1868 near the neighboring town of "Nokia. In 1871, Idestam, together with friend "Leo Mechelin, formed a shared company and called it Nokia, after the site of the second pulp mill. For the next 90 years, Nokia was a forest products and power industry company, with activities such as "electricity generation.

In 1922, Nokia entered into a partnership with "Finnish Cable Works (Suomen Kaapelitehdas) and "Finnish Rubber Works (Suomen Gummitehdas). Finnish Cable Works manufactured "telephone and "electrical cables, while Finnish Rubber Works made "galoshes and other rubber products. The latter company grew rapidly when it moved to the Nokia region in the 1930s to take advantage of the electrical power supply. Finnish Cable Works soon did too.

Nokia made "respirators for both civilian and military use, from the 1930s well into the early 1990s.[14]

1967–1990[edit]

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LV 317M military radio in Hämeenlinna artillery museum. Nokia license built PRC-77 (-1177?) with signal amplifier.

In 1967, the three companies - Nokia, Finnish Cable Works, and Finnish Rubber Works - merged and created the new Nokia Corporation, a new restructured form divided into four major businesses: forestry, cable, rubber and electronics. In the early 1970s, it entered the networking and radio industry. Nokia also started making military equipment for "Finland's defence forces (Puolustusvoimat), such as the "Sanomalaite M/90 communicator in 1983, and the "M61 gas mask first developed in the 1960s. Nokia was now also making "professional mobile radios, "telephone switches, "capacitors and "chemicals.

Following Finland's trade agreement with the "Soviet Union in the 1960s, Nokia expanded into the Soviet market. It soon widened trade, ranging from automatic "telephone exchanges to "robotics amongst others, and by the late 1970s the Soviet Union became a major market for Nokia, helping to yield in high profits. Nokia was also co-operating on scientific-technology with the Soviets. Following the end of the "Cold War "détente in the early 1980s, the "U.S. government became increasingly suspicious about the technologic co-operation between Nokia and its Soviet partners. However Nokia was importing many American components that were then used for the Soviets, and according to U.S. Deputy Minister of Defence, "Richard Perle, Nokia had a secret co-operation with the "Pentagon that allowed the U.S. to keep track in technologic developments in the Soviet Union through trading with Nokia.[15] However this was a demonstration of Finland trading with both sides, as it was neutral during the Cold War.

In 1977 "Kari Kairamo became CEO and he transformed the company's businesses. By this time Finland were becoming what has been called "Nordic Japan". Under his leadership Nokia acquired many companies. In 1984, Nokia acquired television maker "Salora, followed by Swedish electronics and computer maker "Luxor AB in 1985, and French television maker Oceanic in 1987. This made Nokia the third-largest television manufacturer of Europe (behind "Philips and "Thomson). The existing brands continued to be used until the end of the television business in 1996.

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Nokia Mikko 3 minicomputer, 1978
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Mobira Cityman 450, 1985

In 1987 Nokia acquired Schaub-Lorenz, the consumer operations of Germany's "Standard Elektrik Lorenz (SEL), which included its "Schaub-Lorenz" and "Graetz" brands. It was originally part of American conglomerate "International Telephone & Telegraph (ITT) and after the acquisition products were sold under the "ITT Nokia" brand, despite SEL's sale to Compagnie Générale d'Electricité (CGE) in 1986 before turning to "Alcatel.

On 1 April 1988 Nokia bought the computer division of "Ericsson's Information Systems, which originated as a computer division of Swedish aircraft and car manufacturer "Saab called "Datasaab. Ericsson Information Systems made "Alfaskop terminals, "typewriters, "minicomputers and Ericsson "IBM compatible PCs. The merge with Nokia's existing Information Systems division - which already had a line of personal computers called "MikroMikko since 1981 - resulted in the name Nokia Data.

Nokia also acquired Mobira, a mobile telephony company, which was the foundation of its future mobile phones business. In 1981, Mobira launched the "Nordic Mobile Telephone (NMT) service, the world's first international cellular network and the first to allow international "roaming. In 1982, Mobira launched the "Mobira Senator car phone, Nokia's first mobile phone. At that time, the company had no interest in producing mobile phones, which the executive board regarded as akin to "James Bond's gadgets - improbably futuristic and niche devices. After all these acquisitions Nokia's revenue base became US$2.7 billion. Tragically Kairamo committed suicide on 11 December 1988.

In 1987, "Kaapelitehdas (Finnish Cable Works) discontinued production of cables at its "Helsinki factory, effectively shutting down the sub-company.

1990–2010[edit]

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"Jorma Ollila, who oversaw the rise of Nokia in the mobile phone market as CEO from 1992 to 2006

Following "Simo Vuorilehto's appointment as CEO a major restructuring was planned. With 11 groups within the company, Vuorilehto divested industrial units he deemed as un-strategic. "Nokian Tyres (Nokian Renkaat), a tyre producer originally formed as a division of Finnish Rubber Works in 1932, split away from Nokia Corporation in 1988. Two years later, in 1990, Finnish Rubber Works followed suit. In 1991 Nokia sold its computer division, Nokia Data, to "UK-based "International Computers Limited (ICL), the precursor of "Fujitsu Siemens. Investors thought of this as financial trouble and Nokia's stock price sunk as a result. Finland was now also experiencing its "worst recession in living memory, and the "collapse of the Soviet Union, a major customer, made matters worse.

Vuorilehto quit in early 1992 and was replaced by "Jorma Ollila. He saw that despite troubles in the economy, Nokia's "cellular business was booming. As a result he decided to focus on wireless telecommunications and to get rid of non-core assets. This strategy proved to be very successful and the company grew rapidly in the following years.

Nokia's first fully portable mobile phone after the Mobira Senator was the "Mobira Cityman 900 in 1987. Nokia assisted in the development of the "GSM mobile standard in the 1980s, and developed the first GSM network with "Siemens, the predecessor to "Nokia Siemens Network. The world's first GSM call was made by Finnish prime minister "Harri Holkeri on 1 July 1991, using Nokia equipment on the 900 MHz band network built by Nokia and operated by "Radiolinja. In November 1992, the "Nokia 1011 launched, making it the first commercially available GSM mobile phone.[16]

On 12 June 1996 Nokia announced the sale of its "television business to Canada-based "Semi-Tech Corporation.[17] The television manufacturing plant in Germany closed down in September 1996. The sale included the rights to use the Nokia, Finlux, Luxor, Salora, Schaub-Lorenz and Oceanic brands until the end of 1999.[18]

Nokia was the first to launch "digital satellite receivers in the UK, announced in March 1997.[19] In August 1997 Nokia introduced the first digital satellite receiver with "Common Interface (CI) support.[20] In 1998 Nokia became the chosen supplier to produce the world's first "digital terrestrial television set-top boxes by British Digital Broadcasting (BDB), which was eventually launched as "ONdigital.[21]

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A Nokia Mediamaster set-top box

In October 1998, Nokia overtook "Motorola to become the best-selling mobile phone brand,[22] and in December manufactured its 100 millionth mobile phone.[23] Nokia's mobile phones became highly successful in Europe, Africa, Asia and Oceania. They were also one of the pioneers of "mobile gaming due to the popularity of "Snake, which came pre-loaded on many products. The "3310 is one of the company's most well-known products. Nokia also created the best-selling mobile phone of all time, the "Nokia 1100, in 2003.

Nokia claimed in April 1996 its 447Xav and 447K monitors to be the first with "stereo speakers and a "sub-woofer.[24] In May 1999 Nokia introduced their first "wireless LAN products.[25] In January 2000 "ViewSonic acquired Nokia Display Products, the division making "displays for personal computers.[26] On 26 April 2001 Nokia partnered with "Telefonica to supply "DSL modems and routers in Spain.[27]

In 1998 Nokia co-founded "Symbian Ltd. led by "Psion to create a new operating system for "PDAs as a successor of "EPOC32. In 2001 Nokia created the "Series 60 platform on "Symbian OS, later introducing it with their first "camera phone, the "Nokia 7650. Both Nokia and Symbian eventually became the largest "smartphone hardware and software maker respectively, and in February 2004 became the largest shareholder of Symbian Ltd.[28] Nokia acquired the entire company in June 2008 and then formed the "Symbian Foundation as its successor.[29]

In 1998 alone, the company had sales revenue of $20 billion making $2.6 billion profit. By 2000 Nokia employed over 55,000 people.[30]

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A collection of Nokia mobile phones from the 2000s

The "Nokia 3600/3650 was the first camera phone to hit the North American market in 2003. The company would go on to become a successful and innovative camera phone maker. In April 2005 Nokia partnered with German camera optics maker "Carl Zeiss AG.[31] That same month Nokia introduced the "Nseries, which would become its flagship line of smartphones for the next six years.[32] The "Nokia N95 introduced in September 2006 became highly successful and was also awarded as "best mobile imaging device" in Europe in 2007.[33] Its successor the "N82 featured a "xenon flash,[34] which helped it win the award of "best mobile imaging" device in Europe in 2008.[35] The "N93 in 2006 was known for its specialized "camcorder and the twistable design that switches between "clamshell and a camcorder-like position.[36] They were also well-known for the "N8 with a high resolution 12-megapixel sensor in 2010; the "808 PureView in 2012 with a 41-megapixel sensor; and the "Lumia 920 flagship in 2012 which implemented advanced "PureView technologies.[37]

In 2002, Nokia attempted to break into the "handheld gaming market with the "N-Gage.[38] Nokia's head of entertainment and media, Ilkka Raiskinen, once quoted ""Game Boy is for 10-year-olds",[39] stating that N-Gage is more suited to a mature audience. However, the device was a failure, unable to challenge the dominant market leader "Nintendo. Nokia attempted to revive N-Gage as a platform for their S60 smartphones, which eventually launched in 2008.[40]

Nokia launched "mobile TV trials in 2005 in Finland with content provided by public broadcaster "Yle. The services are based on the "DVB-H standard. It could be viewed with the widescreen "Nokia 7710 smartphone with a special accessory enabling it to receive DVB-H signals.[41] Nokia partnered with "Arqiva and "O2 to launch trials in the UK in September 2005.[42]

On 1 June 2006 "Jorma Ollila became the company's chairman and retired as CEO, being replaced by "Olli-Pekka Kallasvuo.[43]

In August 2007 Nokia introduced "Ovi, an umbrella name for the company's new internet services which included the N-Gage platform and the "Nokia Music Store.[44] The Ovi Store faced stiff competition against "Apple's "App Store when it was introduced in 2008.[45]

In October 2008 Nokia announced the "Nokia 5800 XpressMusic, the first device to ship with the new touch-centric S60 5th Edition, also known as Symbian^1, the first iteration of the platform since the creation of the Symbian Foundation. November 2008 Nokia announced it would end mobile phone sales in "Japan because of low market share.[46]

2010–2014[edit]

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A Nokia 9000 Communicator (1996) next to a Nokia E7 Communicator (2011)

In April 2010 Nokia introduced its next flagship mobile device, the "Nokia N8, which would be the first to run on Symbian^3.[47] However it was delayed for many months which tarnished the company's image,[48] especially after the failure of its previous flagship "N97 and tougher competition from "Apple and the rising "Google. On 10 September 2010, "Olli-Pekka Kallasvuo was fired as CEO and it was announced that "Stephen Elop from "Microsoft would take Nokia's CEO position, becoming the first non-Finnish director in Nokia's history. [49]

The old Symbian OS became completely "open source in February 2010.[50] However in November 2010 it was announced that the "Symbian Foundation was closing and that Nokia would take back control of the Symbian operating system under closed licensing.[51] By now Nokia was the only remaining company using the platform, along with carrier "NTT DoCoMo in Japan, after both "Samsung and "Sony Ericsson moved to "Android.

Nokia's Symbian platform that had been the leading smartphone platform in Europe and Asia for many years was quickly becoming outdated and difficult for developers after the advent of "iPhone OS and "Android. To counter this, Nokia started to develop a "Linux-based successor, "MeeGo, in 2010. However, in February 2011, they scrapped MeeGo and announce a partnership with "Microsoft to use "Windows Phone as Nokia's primary operating system, relegating Symbian to a lower priority. Although the MeeGo-based "N9 was met with a highly positive reception in 2011, Nokia - apparently pressured by Microsoft["citation needed] - had already decided to end development on MeeGo and solely focus on its Microsoft partnership. After the announcement of the Microsoft deal, Nokia's market share deteriorated; this was due to demand for Symbian dropping when consumers realized Nokia's focus and attention would be elsewhere.[52] Nokia's first Windows Phone flagship was the "Lumia 800, which arrived in November 2011. Falling sales in 2011, which were not being improved significantly with the Lumia line in 2012, led to consecutive quarters of huge losses. By mid-2012, with the company's stock price falling below $2, Nokia almost became bankrupt.[53][54]

On 11 March 2011 Nokia announced that it had paid Elop a $6 million signing bonus as "compensation for lost income from his prior employer," on top of his $1.4 million annual salary.[55] This was a turning point, since Elop has previously been a Microsoft employee in its Business Division. It later became clear that Microsoft was influential within Nokia, pushing forward its Windows Phone offering.

When the "Lumia 920 was announced in September 2012, it was seen by the press as the first high-end Windows Phone that could challenge rivals due to its advanced feature set. The company was also making gains in developing countries with its "Asha series, which were selling strongly.[56] Although Nokia's smartphone market share recovered in 2013, it was still not enough to improve the dire financial situation:[57] the company had already been undergoing huge losses for two years, and in September 2013 announced the sale of its mobile and devices division to Microsoft.[58] The sale was positive for Nokia to stop further disastrous financial figures, as well as for Microsoft's CEO "Steve Ballmer, who wanted Microsoft to produce more hardware and turn it into a devices and services company.[59] The sale was completed in April 2014, with "Microsoft Mobile becoming the successor to Nokia's mobile devices division.

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A Nokia advertising sign in "Dublin, Ireland

In July 2013, Nokia purchased "Siemens' stake in the Nokia Siemens Networks joint venture for $2.2 billion, turning it into a wholly owned subsidiary called Nokia Solutions and Networks,[60] until being rebranded as simply "Nokia Networks shortly after.[61] During Nokia's financial struggles, its profitable networking division with Siemens provided much of its income; thus, the purchase proved to be positive, particularly after the sale of its mobile devices unit.[62]

2014–present[edit]

After the sale of its mobile devices division, Nokia started to focus on network equipment through "Nokia Networks.[63]

In October 2014, Nokia and "China Mobile signed a US$970 million framework deal for delivery between 2014 and 2015.[64]

On 17 November 2014, Nokia Technologies head Ramzi Haidamus disclosed that the company planned to re-enter the consumer electronics business as an "original design manufacturer, licensing in-house hardware designs and technologies to third-party manufacturers. Haidamus stated that the Nokia brand was "valuable" but "is diminishing in value, and that's why it is important that we reverse that trend very quickly, imminently."[65] The next day, Nokia unveiled the "N1, an Android "tablet manufactured by "Foxconn, as its first product following the Microsoft sale.[66] Haidamus emphasized that devices released under these licensing agreements would be held to high standards in production quality, and would "look and feel just like Nokia built it."[7] Nokia CEO Rajeev Suri stated that the company planned to re-enter the mobile phone business in this manner in 2016, following the expiration of its non-compete clause with Microsoft.[67]

According to Robert Morlino, the spokesman of Nokia Technologies, Nokia planned follow the "brand-licensing model rather than direct marketing of mobile devices due to the sale of its mobile devices division to Microsoft.[68] The company took aggressive steps to revitalize itself, evident through its hiring of software experts, testing of new products, and seeking of sales partners.[69] On 14 July 2015, CEO Rajeev Suri confirmed that the company would make a return to the mobile phones market in 2016.[70]

On 28 July 2015, Nokia announced OZO, a "360-degrees "virtual reality camera, with eight "2K optical image sensors. The division behind the product, Nokia Technologies, claimed that OZO would be the most advanced "VR film-making platform.[71] Nokia's press release stated that OZO would be "the first in a planned portfolio of digital media solutions," with more technologic products expected in the future.[72] OZO was fully unveiled on 30 November in "Los Angeles. The OZO, designed for professional use, was intended for retail for US$60,000;[73] however, its price was decreased by $15,000 prior to release,[74] and is listed on its official website as $40,000. [75]

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Nokia office building in North America - originally Alcatel-Lucent's office before the acquisition

On 14 April 2015, Nokia confirmed that it was in talks with the French telecommunications equipment company "Alcatel-Lucent regarding a potential merger.[76] The next day, Nokia officially announced that it had agreed to purchase Alcatel-Lucent for €15.6 billion in an all-stock deal.[77] CEO Rajeev Suri felt that the purchase would give Nokia a strategic advantage in the development of "5G wireless technologies,[78][79] and the acquisition aimed to create a stronger competitor to the rival firms "Ericsson and "Huawei, whom Nokia and Alcatel-Lucent had surpassed in terms of total combined revenue in 2014. Nokia shareholders hold 66.5% of the new combined company, while Alcatel-Lucent shareholders hold 33.5%. The "Bell Labs division was to be maintained, but the Alcatel-Lucent brand would be replaced by Nokia.[77][80] In October 2015, following approval of the deal by China's Ministry of Commerce, the merger awaited approval by French regulators.[81] Despite the initial intent of selling the submarine cable division separately, Alcatel-Lucent later declared that it would not.[82] The merger closed on 14 January 2016.[83]

On 3 August 2015, Nokia announced that it had reached a deal to sell its "Here digital maps division to a consortium of "BMW, "Daimler AG and "Volkswagen Group for €2.8 billion.[84] The deal closed on 3 December 2015.[85]

On 26 April 2016, Nokia announced its intent to acquire connected health device maker "Withings for US$191 million. The company was integrated into a new Digital Health unit of Nokia Technologies.[86][87]

On 18 May 2016, Microsoft Mobile sold its Nokia-branded feature phone business to "HMD Global, a new company founded by former Nokia executive Jean-Francois Baril, and an associated factory in Vietnam to "Foxconn's "FIH Mobile subsidiary. Nokia subsequently entered into a long-term licensing deal to make HMD the exclusive manufacturer of Nokia-branded phones and tablets outside of Japan, operating in conjunction with Foxconn. The deal also granted HMD the right to essential patents and feature phone software. HMD subsequently announced the Android-based "Nokia 6 smartphone in January 2017.[88][89] At "Mobile World Congress, HMD additionally unveiled the "Nokia 3 and "Nokia 5 smartphones, as well as a "re-imagining of Nokia's classic "3310 feature phone.[90][91] While Nokia has no investment in the company they do have some input in the new devices.

On 28 June 2016 Nokia demonstrated for the first time ever a "5G-ready network.[92] In February 2017 Nokia carried out a 5G connection in "Oulu, Finland using the 5GTF standard, backed by "Verizon, on "Intel architecture-based equipment.[93]

On 5 July 2017, Nokia and "Xiaomi announced that they have signed a business collaboration agreement and a multi-year patent agreement, including a cross license to each company's cellular standard essential patents.[94]

Operations[edit]

Nokia is a "public limited-liability company listed on the "Helsinki and "New York stock exchanges.[4] Nokia has played a very large role in the "economy of Finland,[95][96] and it is an important employer in the country, working with multiple local "partners and "subcontractors.[97] Nokia contributed 1.6% to Finland's GDP and accounted for about 16% of the country's exports in 2006.[98]

Nokia comprises four business groups.

Nokia Networks[edit]

"Nokia Networks, formerly known as Nokia Siemens Networks (NSN) and "Nokia Solutions and Networks (NSN), is a multinational data networking and telecommunications equipment company headquartered in Espoo, Finland. It is the world's fourth-largest telecoms equipment manufacturer, measured by 2011 revenues (after "Ericsson, "Huawei and "Alcatel-Lucent).[99] It has operations in around 150 countries.[100]

The NSN brand identity was launched at the 3GSM World Congress in "Barcelona in February 2007 as a joint venture between Nokia (50.1%) and "Siemens (49.9%),[101] although it is now wholly owned by Nokia. It provides wireless and fixed network infrastructure, communications and networks service platforms, and professional services to operators and service providers.[102] It focuses on "GSM, "EDGE, "3G/W-CDMA, "LTE and "WiMAX radio access networks, supporting core networks with increasing IP and multiaccess capabilities and services.

In July 2013, Nokia bought back all shares in Nokia Siemens Networks for a sum of US$2.21 billion and renamed it Nokia Networks.[103]

Nokia Technologies[edit]

Nokia Technologies is a division of Nokia that develops and licenses technology and the Nokia brand.[104] Its focuses are imaging, sensing, wireless connectivity, power management and materials, and other areas such as the IP licensing program. It consists of three labs: Radio Systems Lab, in areas of radio access, wireless local connectivity, and radio implementation; Media Technologies Lab, in areas of multimedia and interaction; and Sensor and Material Technologies Lab, in areas of advanced sensing solutions, interaction methods, nanotechnologies and quantum technologies. Nokia Technologies also provides public participation in its development through the Invent with Nokia program.[105]

In November 2014, Nokia Technologies launched its first product, the "Nokia N1 "Android 5.0 "tablet computer manufactured by "Foxconn.[106]

In July 2015, Nokia Technologies introduced a "VR camera called "OZO, designed for professional content creators and developed in "Tampere, Finland. With its 8 synchronized shutter sensors and 8 microphones, the product can capture "stereoscopic 3D video and "spatial audio.[107][108]

Following May 2016, Nokia Technologies' "research and development team acts as the base for future Nokia-branded devices created by "HMD Global.

On 31 May 2016, the Digital Health unit was founded. It is led by Cédric Hutchings, former CEO of "Withings, which Nokia acquired.[109]

On 31 August 2016, Ramzi Haidamus announced he would be stepping down from his position as president of Nokia Technologies.[110] Brad Rodrigues, previously head of strategy and business development, assumed the role of interim president.[111]

Alcatel-Lucent[edit]

Nokia bought a share of 80% of "Alcatel-Lucent, and took over the management control of the company.

Nokia Bell Labs[edit]

"Bell Laboratories became a subsidiary of Nokia Corporation after the takeover of "Alcatel-Lucent. It was subsequently renamed Nokia Bell Labs.

Corporate affairs[edit]

Corporate governance[edit]

The control and management of Nokia is divided among the shareholders at a general meeting and the Nokia Leadership Team (left),[112] under the direction of the board of directors (right).[113] The chairman and the rest of the Nokia Leadership Team members are appointed by the board of directors. Only the Chairman of the Nokia Leadership Team can belong to both the board of directors and the Nokia Leadership Team. The board of directors' committees consist of the Audit Committee,[114] the Personnel Committee,[115] and the Corporate Governance and Nomination Committee.[116][117]

The operations of the company are managed within the framework set by the Finnish Companies Act,[118] Nokia's Articles of Association,[3] and Corporate Governance Guidelines,[119] supplemented by the board of directors' adopted charters.

Nokia Leadership Team[112]
"Rajeev Suri (Chairman)
President and CEO since 1 May 2014
Joined Nokia in 1995
Samih Elhage
Executive Vice President and Chief Financial and Operating Officer of Nokia Networks
Joined Nokia Networks 2012
Ramzi Haidamus
President of Nokia Technologies
Joined Nokia in 2014
Timo Ihamuotila
Executive Vice President and Group Chief Financial Officer
With Nokia 1993–1996, rejoined 1999, Nokia Leadership Team member since 2007
Board of directors[113]
"Risto Siilasmaa (Chairman)
Chairman of the Corporate Governance and Nomination Committee
Founder and Chairman of "F-Secure Corporation
Board member since 2008, Chairman of the board of directors since 3 May 2012
Jouko Karvinen (other languages) (Vice chairman)
Chairman of the Audit Committee, Member of the Corporate Governance and Nomination Committee
CEO of "Stora Enso Oyj
Board member since 3 May 2011
Vivek Badrinath
Deputy Chief Executive Officer, Accor Group
Bruce Brown

Member of the Personnel Committee
Chief Technology Officer of "Procter & Gamble

Board member since 3 May 2012

Elizabeth Doherty
Independent directorBoard member since May 2013
Elizabeth Nelson

Member of the Audit Committee
Independent Corporate Advisor

Board member since 3 May 2012

Kari Stadigh

Member of the Personnel Committee
Group CEO and President of "Sampo Group

Board member since 3 May 2011

Former corporate officers[edit]

Chief executive officers Chairmen of the board of directors[120]
Name Tenure Name Tenure
"Björn Westerlund 1967–1977 "Lauri J. Kivekäs 1967–1977
"Kari Kairamo 1977–1988 Björn Westerlund 1977–1979
"Simo Vuorilehto 1988–1992 "Mika Tiivola 1979–1986
"Jorma Ollila 1992–2006 "Kari Kairamo 1986–1988
"Olli-Pekka Kallasvuo 2006–2010 "Simo Vuorilehto 1988–1990
"Stephen Elop 2010–2014 "Mika Tiivola 1990–1992
"Casimir Ehrnrooth 1992–1999
"Jorma Ollila 1999–2012

Stock[edit]

Nokia is a "public limited liability company and is the oldest company listed under the same name on the "Helsinki Stock Exchange, beginning in 1915.[121] Nokia has had a secondary listing on the "New York Stock Exchange since 1994.[4][121] Nokia shares were delisted from the "London Stock Exchange in 2003, the "Paris Stock Exchange in 2004, the "Stockholm Stock Exchange in 2007 and the "Frankfurt Stock Exchange in 2012.[122] Due to the acquisition of Alcatel-Lucent in 2015, Nokia listed its shares again on the Paris Stock Exchange and was included in the "CAC 40 index on 6 January 2016.[123]

In 2007, Nokia had a market capitalization of €110 billion; by 17 July 2012 this had fallen to €6.28 billion, and by 23 February 2015, it increased to €26.07 billion.

Corporate culture[edit]

Nokia's official "corporate culture manifesto, The Nokia Way, emphasizes the speed and flexibility of decision-making in a "flat, "networked organization.[124]

The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company communication.

In May 2007, Nokia redefined its values after initiating a series of discussion across its worldwide branches regarding what the new values of the company should be. Based on the employee suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for Innovation, and Very Human.[124]

In August 2014, Nokia redefined its values again after the sale of its Devices business. The new values were defined with the key words respect, achievement, renewal and challenge.

Headquarters[edit]

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The Nokia House (now "Microsoft Talo) was Nokia's head office up until April 2014. The building is located by the "Gulf of Finland in "Keilaniemi, "Espoo, and was constructed between 1995 and 1997. It was the workplace of more than 1,000 Nokia employees.[121]

The Nokia House was the "head office building of Nokia Corporation, located in "Keilaniemi, "Espoo. The two southernmost parts of the building were built in the early 1990s and the third, northernmost part was built in 2000. Around 5000 employees work in the premises.

In December 2012, Nokia announced that it had sold its head office building to Finland-based Exilion for €170 million and was leasing it back on a long term basis.[125] The building was later sold to Microsoft as part of the sale of the mobile phone business in April 2014 and renamed to "Microsoft Talo.[126]

Since the sale, Nokia's headquarters are in Karaportti, Espoo, Finland.[127]

Logos[edit]

Controversies[edit]

NSN's provision of intercept capability to Iran[edit]

In 2008, "Nokia Siemens Networks, a joint venture between Nokia and "Siemens AG, reportedly provided "Iran's monopoly telecom company with technology that allowed it to intercept the Internet communications of its citizens.[133] The technology reportedly allowed Iran to use "deep packet inspection to read and change the content of emails, social media, and online phone calls. The technology "enables authorities to not only block communication but to monitor it to gather information about individuals, as well as alter it for disinformation purposes."[134]

During the "post-election protests in Iran in June 2009, Iran's Internet access was reported to have slowed to less than a tenth of its normal speeds, which experts suspected was due to the use of the interception technology.[135]

In July 2009, Nokia began to experience a "boycott of their products and services in "Iran. The boycott was led by consumers sympathetic to the post-election protest movement and targeted companies deemed to be collaborating with the regime. Demand for handsets fell and users began shunning "SMS messaging.[136]

Nokia Siemens Networks asserted in a press release that it provided Iran only with a "lawful intercept capability solely for monitoring of local voice calls" and that it "has not provided any deep packet inspection, web censorship, or Internet filtering capability to Iran."[137]

Lex Nokia[edit]

In 2009, Nokia heavily supported a law in Finland that allows companies to monitor their employees' electronic communications in cases of suspected information leaking.[138] Nokia denied rumors that the company had considered moving its head office out of Finland if laws on electronic "surveillance were not changed.[139] The Finnish media dubbed the law Lex Nokia because it was implemented as a result of Nokia's pressure.

The law was enacted, but with strict requirements for implementation of its provisions. No company had used its provisions prior to 25 February 2013, when the Office of Data Protection Ombudsman confirmed that city of "Hämeenlinna had recently given the required notice.[140]

Nokia–Apple patent dispute[edit]

In October 2009, Nokia filed a lawsuit against "Apple Inc. in the "U.S. District Court of Delaware claiming that Apple infringed on 10 of its patents related to wireless communication including data transfer.[141] Apple was quick to respond with a countersuit filed in December 2009 accusing Nokia of 11 patent infringements. Apple's General Counsel, "Bruce Sewell went a step further by stating, "Other companies must compete with us by inventing their own technologies, not just by stealing ours." This resulted in a legal battle between the two telecom majors with Nokia filing another suit, this time with the "U.S. International Trade Commission (ITC), alleging Apple of infringing its patents in "virtually all of its mobile phones, portable music players and computers."[142] Nokia went on to ask the court to ban all U.S. imports of the Apple products, including the "iPhone, "Macintosh, and "iPod. Apple countersued by filing a complaint with the ITC in January 2010.[141]

In June 2011, Apple settled with Nokia and agreed to an estimated one time payment of $600 million and royalties to Nokia.[143] The two companies also agreed on a cross-licensing patents for some of their patented technologies.[144][145]

Alleged tax evasion in India[edit]

Nokia's Indian subsidiary has been charged with non-payment of "TDS and transgressing "transfer pricing norms in India.[146] The unpaid TDS of 30 billion, accrued during a course of six years, was due to royalty paid by the Indian subsidiary to its parent company.[147]

See also[edit]

References[edit]

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Further reading[edit]

Title Author Publisher Year Length ISBN
"The Decline and Fall of Nokia David J. Cord Schildts & Söderströms April 2014 304 pp "ISBN "978-951-52-3320-2
Winning Across Global Markets: How Nokia Creates Strategic Advantage in a Fast-Changing World "Dan Steinbock "Jossey-Bass / Wiley May 2010 304 pp "ISBN "978-0-470-33966-4
Nokia: The Inside Story "Martti Häikiö "FT / "Prentice Hall October 2002 256 pp "ISBN "0-273-65983-9
Work Goes Mobile: Nokia's Lessons from the Leading Edge Michael Lattanzi, Antti Korhonen, Vishy Gopalakrishnan "John Wiley & Sons January 2006 212 pp "ISBN "0-470-02752-5
Mobile Usability: How Nokia Changed the Face of the Mobile Phone Christian Lindholm, Turkka Keinonen, Harri Kiljander "McGraw-Hill Companies June 2003 301 pp "ISBN "0-07-138514-2
Business The Nokia Way: Secrets of the World's Fastest Moving Company Trevor Merriden "John Wiley & Sons February 2001 168 pp "ISBN "1-84112-104-5
The Nokia Revolution: The Story of an Extraordinary Company That Transformed an Industry Dan Steinbock AMACOM Books April 2001 375 pp "ISBN "0-8144-0636-X

External links[edit]

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