A Background of The Nokia Company | Nokia | Mobile Phones
A Background of The Nokia Company. A few years ago, Microsoft reached a deal to acquire the fighting devices and service...
A Background of The Nokia Company A few years ago, Microsoft reached a deal to acquire the fighting devices and services business of Nokia, and lately, its HERE mapping unit was sold by the Finnish firm to a group of German carmakers. It's true that Nokia had awful last five years, but this does not take away the fact that it was this very business that gave us some of the most memorable phones, and effectively defined the cellular business for over a decade earlier. In this article, we take a trip down memory lane to revisit Nokia's history, which - hold your breath spans a whopping 150 years. Modest starts While Nokia may remind most of only cellular phones, the business in fact started out as a paper mill, which was established in 1865 by mining engineer Fredrik Idestam at the Tammerkoski Rapids in southwestern Finland. But, the name Nokia was not yet produced. It was the location of his second factory - on the banks of the Nokianvirta river - Idestam inspired to name his company Nokia Ab, something which happened in 1871. After around three decades, the business ventured into electricity generation. Meanwhile, Eduard Polon founded Finnish Rubber Works in 1898, and Arvid Wickstrom created Finnish Cable Works . In 1918, Finnish Rubber Works acquired Nokia to ensure use of the latter's hydropower resources, and Finnish Cable Works was likewise acquired from the newly formed conglomerate. They continued to work independently until 1967, when they were eventually unified and Nokia Corporation was born, while the three businesses were jointly owned. The recently formed company primarily focused on four markets: paper, electronics, rubber, and cable. It developed things like robotics, car and bicycle tires, rubber footwear, TVs, communication cables, toilet paper, PCs, and military gear, among others. Portfolio growth Nokia entered into a joint venture with leading Scandinavian color TV maker Salora to create a radio telephone company, Mobira Oy. Several years later, Nokia launched the planet 's first international mobile system dubbed Nordic Mobile Telephone network, which linked Finland, and Sweden, Denmark, Norway. This was followed by the launch of the business's as well as world's first car phone dubbed Mobira Senator, which weighed in at around 10 kg. In 1984, Nokia got Salora and switched the name of its telecommunications unit to Nokia-Mobira Oy. The year also marked the launch of Mobira Talkman, that has been advertised as one of the first transportable cellphones. This means although it was around 5kg, it could be utilized both in and out of car. 3 years later, the organization introduced its first streamlined phone called Mobira Cityman 900, which was also the world's first handheld mobile telephone. Despite weighing around 800g and
carrying a price of around $5,456, it sold like hot cakes. The cellphone became iconic and was nicknamed "The Gorba" after the then Soviet Union president Mikhail Gorbachev used it to to generate a call from Helsinki to Moscow during a press conference in October 1987. The next year brought a period that was rough for the company as it seen sharp drop in profits owing to intense price competition in the consumer electronics markets, and its own chairman Kari Kairamo committed suicide apparently because of anxiety. The brand new leaders brought changes, dividing the company into six units: mobile phones, consumer electronics, cables and machinery, information, telecommunications, and essential industries, while divesting other units like flooring, paper, rubber, and ventilation systems. Transform in focus - mobile phones In 1990's, the top leaders of Nokia chose to focus solely on the telecommunications market, and consequently, the business's information, power, tv, tire, and cable units were sold off in the very first couple of years of the decade. In 1991, world's first GSM call was made by the then Finnish prime minister, Harri Holkeri. Unsurprisingly, it was made using Nokia gear. The next year, the firm's first hand-held GSM cellphone Nokia 1011 was launched. The device allegedly had a talk time of 90 minutes and might store 99 contact numbers. It was known as Mobira Cityman 2000. A few years later, the organization established its 2100 chain of mobiles, which were also the first to feature the iconic Nokia Melody ringtone. In 1996, Nokia 9000 Communicator was launched. The all in one phone, which carried a cost of $800, enabled users to send emails, facsimile, and browse web, besides offering word processing and spreadsheet capabilities. Though the mobile managed to generate a committed following, it absolutely wasn't commercially successful.. In the same year, the company also established the Nokia 8110 slider mobile. World leader The spectacular success of the 6100 series of Nokia - the company sold nearly 41 million cellular phones in 1998 - helped the business surpass Motorola and become the world's top cellular phone maker for the reason that year. It is worth mentioning the Nokia 6110 was the primary phone that came with all the classic Snake game pre-installed. Nokia's net sales increased over 50% year-on-year, operating profits shot up almost 75%, and stock price sky-rocketed a whopping 220%, leading to an increase of market capitalization from almost $21 billion to around $70 billion. The year 1998 also saw the company found the Nokia 8810, its first phone without an outside antenna. The main was also among the first phones of the Nokia with chrome slider shell.
The following year saw the company launching the Nokia 3210. In addition to offering additional ringtones and games, the device also enabled users to send preinstalled picture messages (such as Happy Birthday) via SMSs. The 2000s - a fresh era Internet technologies and the wireless were converging, along with the 3rd generation of wireless technology - that assured enhanced multimedia ability - was evolving. Responding to the changes, the Finnish firm started churning out both advanced multimedia handsets together with low-end devices. The year 2001 saw the business establishing the Nokia 7650, it's first phone to feature a built-in camera. It was likewise the first to sport a colour display that is full. This was followed by the start of its (together with the world's) first 3G phone, the Nokia 6650, in 2002. The company also established the Nokia 3650, the primary Symbian Series 60 device to appear in america marketplace, the same year. It was Nokia's first phone to feature a video recorder. In 2003, the organization established the Nokia 1100, a budget-friendly mobile that sold around a whopping 250 million units, making it the best-selling cellphone along with the best selling consumer electronics product on earth. By The Way, it was additionally the billionth phone sold in 2005 of the business. The year 2003 also saw the launching of the company's unorthodox-appearing N-Gage device. Running Symbian OS 6.1 (Series 60), the cellphone/hand-held gaming system wasn't much successful commercially as just 3 million units were sold. The following year, the Nokia 7280 "lipstick" phone was established. Section of the business's "Trend Phone" line, the apparatus was listed as among the finest products of the year by Fortune Magazine. The company established its N-series of phones, with N91, N90, and the N70 being the first members of the series. The main N8 was found later in 2010. With Apple launching its first-generation iPhone in 2007 as well as the growing popularity of touch screen cellphones, Nokia outed its first all touch smartphone. As the company was able to sell around 8 million units of the device it was successful, but it didn't manage to create diehard following as it touch-encounter was sub par. Early hiccups and the heroic drop It was the year 2001, after becoming the leading phone manufacturer in the world, when Nokia's gains first crumbled. This was chiefly due to a slowdown in mobile phone market. That downfall turned out to be shortlived, but in 2004, the company again reported that it is market share is sliding, despite leading using the solid 35% three years afterwards. What's even worse was that the batteries - which were manufactured between 2005- end and 2006 end - appeared in an extensive selection of Nokia cellphones, which meant a large part of the firm's
device portfolio was changed. On the other hand, iPhone sales sky-rocketed during precisely the same period by around 330%. 2009 found Nokia laying off 1,700 workers worldwide ., the year Later in the year, the fighting firm that was Finnish eventually acknowledged that it was slow to react to the change in the market, which was being taken over from the likes of Apple and BlackBerry, and impacted by novices like Samsung, HTC, and LG. The next year, Stephen Elop - who was formerly head of Microsoft's business software division - was named as Nokia's new CEO. He was also the very first non-Finnish leader of the firm. Job cuts continued, although 2010 found a rise in profits for the firm. Elop became famed for a speech which he delivered to Nokia workers in early 2011, wherein he compared the company's market position to your man standing on a "burning platform." Quite clearly, the situation of the business was going from bad to worse. Determined compete with competitions and better to come from the continuing disaster, Nokia announced a strategic partnership to make the latter's Windows Phone its mobile OS that was primary. After the announcement, there were rumors that Microsoft is in discussions to get the giant that is Finnish that is struggling. Nevertheless, at that point in time, Elop rubbished them as "baseless." Meanwhile, Apple overtook Nokia in smartphone sales in Q2, 2011. The first fruit the partnership between Nokia and Microsoft bore were the Lumia 800 and Lumia 710 smartphones, which were pronounced later in 2011. While the former (revealed below) targeted the higher end of the market, the latter was aimed at lower end-customers. Though by selling over a million units of these devices in only a few months the business managed to beat market expectations, job reductions continued. Meanwhile, within an attempt to save more expenses, the business also announced that it'll close its earliest factory in Finland and change its production to Asia, which had become its largest market by then - all of this happened in early 2012. This was followed by another round of job cuts, changing around 10,000 workers this time. Later that year, the organization launched Windows Cellphone 8-powered Lumia 920 main, which got mixed reviews - bulkiness as well as mainly criticized for its large size. In November 2012, the smartphone became best-selling phone of the week on Amazon, and also topped Expansys' chart during precisely the same interval in the united kingdom - still it never quite reached the blockbuster sales the business needed to come back to profitability. Finally, the year 2013 brought some great news as Nokia returned to profit six quarters of bleeding money. However, earnings dropped significantly owing to the failure to produce any dent in the smartphone marketplace of the company. In September that year, Nokia announced it is selling its Devices & Services division to Microsoft. The deal, which saw CEO Stephen Elop return to Microsoft, additionally included the Finnish company's patents and mapping services, although it excluded the Nokia's Chennai factory in India along with the Masan factory in South Korea. The sale formally completed in April 2014.
Decision The unwillingness to embrace radical change when it was demanded the most of the Finnish company was probably the biggest reason that brought down the mobile giant. The firm took way too much time to embrace the revolution that was smartphone and when it finally did it made way way too many errors in its strategy. Nokia attempted to compete simply by adding touch to the legacy Symbian - a patch that didn't deliver the fluid user experience of its own competitors at that time. Afterward the substitution to Windows Phone was announced way before there was actual hardware ready - a move that developer interest will be boosted by Elop expected, but ended up mainly killing Symbian sales 7 months before Nokia had an option to offer. Two blunders of that magnitude, together with the great delay in bound to touchscreen were enough to cost the business 's dominant position in the marketplace that is quickly moving. Yet, that doesn't take away the fact that Nokia remains a tremendous part of mobile phone history that will never be forgotten.