How Nokia fell

Nokia, almost everyone remembers Nokia. It is most famous for the Nokia 3310’s, joked that if that phone fell it broke the floor. They made a case for it and that was to protect the floor et cetera.

How it started

The Finnish company Nokia started out as a single paper mill operation, think printer paper. throughout the 19th century it expanded and branching several products.

Nokia’s name is from the town Nokia and the Nokianvirtra river. Fredrik Idestam was a mining engineer and establisted a wood pulp mill in 1865 on the Tammerkoski banks in the Finnish town of Tampere, it was back then still part of the Russian Empire. 3 years later he built another mill in Nokia. A friend of Fredrik Leo Mechelin was a statesman and together they formed Nokia company.

The War

After World War I, Nokia was nearly bankrupt and was acquired by Finnish Rubber Works. Finnish Rubber Works acquired Finnish Cable Works in 1932.

When World War II ended, Finnish Cable Works supplied cables for the Soviet Union for war reparations, this was beneficial for later trade.

Nokia Corporation

In 1967 Nokia Corporation was formed by the merged three companies. Nokia Corporation manufactured a lot of products, some are vehicle tires, boots, consumer electronics, computers and military equipment.

And in 1964 Nokia had developed VHF radios with Salora Company and in 1966 Nokia and Salora had developed radio car phones which in 1971 became the first commercially mobile phone network in Finland and in 1978 it covered all of Finland. In the 80’s and 90’s it had developed the messaging system for the Finnish Defence Forces.

Joint ventures

Nokia and Salora made Mobira Company, a joint venture between them. Mobira developed mobile phones for the Nordic Mobile Telephone network, it was called 1G and was the first cellular phone system and went commerical available in 1981.

Nokia purchased Salora in 1984 and named Nokia’s telecom division to Nokia-Mobira Company.

In the 80’s and 90’s Nokia had some financial difficulties and made some losses, both Nokian Tyres and Nokian Footware became a seperate entity.

Nokia’s Golden age

When in 1992 Jorma Ollila became CEO of Nokia and made telecom Nokia’s main concern. International sales increased relative as much as Finnish sales and by mid 1990 Nokia’s supply of phones could not meet the demand.

Between 1996 and 2001 Nokia’s revenue from €6.5 billion to €31 billion. In 1998 and 2012 Nokia was the worlds greatest mobile phone manufacturer. Nokia’s greatest year was 2007 when it dominated 49.4% of the market share. To put that in perspective now Samsung has 31.04%, Apple has 25.15%, Huawei has 10.73%. So Nokia was huge.

In 2010 Nokia Launched the most famous Nokia 3310, in 2003 the Nokia 1100. Until 2011 Nokia’s operating system was Symbian, the latest Symbian phone was the 2012 Nokia 808 PureView which has a 41-megapixel camera.

Nokia’s downfall

Nokia loses it marketshare in 2011 when Symbian was not fast because Nokia focused on good quality phones but not so much on the software. Symbian became slower then other operating systems and Nokia partnered with Microsoft in 2011.

On 25 of April 2014 Nokia sold it’s mobile phone business to Microsoft for €3.79 billion.

Hope?!

In the 18th of may 2016 Microsoft sold the Nokia branded feature phones to FIH Mobile and HMD. Nokia provided it’s brand and patent licensing to HMD.

January 8 2017 brought us the Nokia 6, a midranged phone with android. HMD released more phones and are still at it in 2020.

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