1865-05-12 to 1865-05-11
FinlandNokia Corporation is a Finnish multinational telecommunications, information technology, and consumer electronics company, founded in 1865. Nokia's headquarters are in Espoo, in the greater Helsinki metropolitan area. In 2018, Nokia employed approximately 103,000 people across over 100 countries, did business in more than 130 countries, and reported annual revenues of around €23 billion. Nokia is a public limited company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is the world's 415th-largest company measured by 2016 revenues according to the Fortune Global 500, having peaked at 85th place in 2009. It is a component of the Euro Stoxx 50 stock market index.
In 1922, Nokia Ab entered into a partnership with Finnish Rubber Works and Kaapelitehdas (the Cable Factory), all now jointly under the leadership of Polón. Finnish Rubber Works company grew rapidly when it moved to the Nokia region in the 1930s to take advantage of the electrical power supply, and the cable company soon did too.
In 1977, Kari Kairamo became CEO and he transformed the company's businesses. By this time, Finland was becoming what has been called "Nordic Japan". Under his leadership Nokia acquired many companies including television maker Salora , followed by Swedish electronics and computer maker Luxor AB, and French television maker Oceanic. This made Nokia the third-largest television manufacturer of Europe (behind Philips and Thomson).
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.
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.
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.
Vuorilehto quit in January 1992 and was replaced by Jorma Ollila, who had been the head of the mobile phone business from 1990 and advised against selling that division. Ollila decided to turn Nokia into a 'telecom-oriented' company, and he eventually got rid of divisions like the power business. This strategy proved to be very successful and the company grew rapidly in the following years. Nokia's operating profit went from negative in 1991 to $1 billion in 1995 and almost $4 billion by 1999.
On 12 June 1996, Nokia announced the sale of its television business to Canada/Hong Kong-based Semi-Tech Corporation. The sale included a factory in Turku, and the rights to use the Nokia, Finlux, Luxor, Salora, Schaub-Lorenz and Oceanic brands until the end of 1999.
Nokia was one of the pioneers of mobile gaming due to the popularity of Snake, which came pre-loaded on many products. In 2002, Nokia attempted to break into the handheld gaming market with the N-Gage. the device was a failure, unable to challenge the dominant market leader Nintendo.
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. Ollila had also announced that he would step down as Nokia chairman by 2012. 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.
On 11 February 2011, Nokia announced a "strategic partnership" with Microsoft, under which it would adopt Windows Phone 7 as its primary operating system on smartphones, and integrate its services and platforms with its own, including Bing as search engine, and integration of Nokia Maps data into Bing Maps. Elop stated that Nokia chose not to use Android because of an apparent inability to "differentiate" its offerings, with critics also noting that his past ties to Microsoft may have also influenced the decision.
On 1 August 2011, Nokia announced that it would adopt a new three-digit naming system for mobile phone products and stop using letters, effectively ending the Nseries, Eseries, and short-lived Cseries.
In July 2013, Nokia bought 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, until being rebranded as Nokia Networks soon after.
In September 2013 Nokia announced the sale of its mobile and devices division to Microsoft. The sale was positive for Nokia to avoid further negative 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.
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.
On 14 April 2015, Nokia confirmed that it was in talks with the French telecommunications equipment company Alcatel-Lucent regarding a potential merger. The next day, Nokia announced that it had agreed to purchase Alcatel-Lucent for €15.6 billion in an all-stock deal.
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. The deal closed on 3 December 2015.
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. OZO was fully unveiled on 30 November in Los Angeles. The OZO, designed for professional use, was intended for retail for US$60,000.
On 26 April 2016, Nokia announced its intent to acquire French connected health device maker Withings for US$191 million. The company was integrated into a new Digital Health unit of Nokia Technologies. Nokia later wrote off the cost of the acquisition and in May 2018 the health unit was sold back to Éric Carreel, a Withings co-founder and former CEO.
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 Japan, operating in conjunction with Foxconn. The deal also granted HMD the right to essential patents and featurephone software.
In October 2015, following approval of the deal by China's Ministry of Commerce, the merger awaited approval by French regulators. The merger closed on 14 January 2016, but was not complete until 3 November 2016.
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. 5GTF
On 29 January 2018, Nokia introduced the ReefShark line of 5G chipsets, claiming that it triples bandwidth to 84 Gbit/s. It will be released by Q3 2018. It also incorporates artificial intelligence technologies from Bell Labs.