Nokia

Nokia Corporation (Finnish pronunciation: [ˈnɔkiɑ]) (OMX: NOK1V, NYSE: NOK, FWB:

NOA3) is a Finnish multinational communications corporation that is headquartered in
Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.[3] Nokia is engaged in the
manufacturing of mobile devices and in converging Internet and communications industries,
with over 123,000 employees in 120 countries, sales in more than 150 countries and global
annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. [1] It is the
world's largest manufacturer of mobile telephones: its global device market share was
30% in the third quarter 2010, down from an estimated 34% in the third quarter 2009 and
an estimated 33% in the second quarter 2010. [2] Nokia's estimated share of the converged
mobile device market was 38% in the third quarter, compared with 41% in the second
quarter 2010.[2] Nokia produces mobile devices for every major market segment and
protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services
such as applications, games, music, maps, media and messaging through its Ovi platform.
Nokia's subsidiary Nokia Siemens Networks produces telecommunications network
equipment, solutions and services.[4] Nokia is also engaged in providing free digital map
information and navigation services through its wholly-owned subsidiary.

First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared
to the Nokia 1100 from 2003. The Mobira Cityman line was launched in 1987.

The technologies that preceded modern cellular mobile telephony systems were the
various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing
commercial and some military mobile radio communications technology since the 1960s,
although this part of the company was sold some time before the later company
rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy.
In 1966, Nokia and Salora started developing the ARP standard (which stands for
Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system
and the first commercially operated public mobile phone network in Finland. It went online
in 1971 and offered 100% coverage in 1978.In 1979, the merger of Nokia and Salora
resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for
the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully-
automatic cellular phone system that went online in 1981. In 1982, Mobira introduced its
first car phone, the Mobira Senator for NMT-450 networks.Nokia bought Salora Oy in
1984 and now owning 100% of the company, changed the company's telecommunications
branch name to Nokia-Mobira Oy. The Mobira Talkman, launched in 1984, was one of the
world's first transportable phones. In 1987, Nokia introduced one of the world's first
handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to
NMT-450, offered a better signal, yet a shorter roam). While the Mobira Senator of 1982
had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the Mobira Cityman
weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks
(approximately €4,560).Despite the high price, the first phones were almost snatched
from the sales assistants’ hands. Initially, the mobile phone was a "yuppie" product and a
status symbol.Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader
Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his
communications minister in Moscow. This led to the phone's nickname of the "Gorba".In
1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit, along with
two other employees from the unit, started a notable mobile phone company of their own,
Benefon Oy (since renamed to GeoSentric). One year later, Nokia-Mobira Oy became
Nokia Mobile Phones.

Product releases

Reduction in size of Nokia mobile phones.

Nokia released its first touch screen phone in 2004. The Nokia 7710 was introuduced as
Nokia's first touch screen phone and was a huge success.In May 2007, Nokia announced
that its Nokia 1100 handset, launched in 2003, with over 200 million units shipped, was the
best-selling mobile phone of all time and the world's top-selling consumer electronics
product. In November 2007, Nokia announced and released the Nokia N82, its first
Nseries phone with Xenon flash.At the Nokia World conference in December 2007, Nokia
announced their "Comes With Music" program: Nokia device buyers are to receive a year
of complimentary access to music downloads. The service became commercially available in
the second half of 2008.Nokia Productions was the first ever mobile filmmaking project
directed by Spike Lee. Work began in April 2008, and the film premiered in October 2008.
[75]
In 2008, Nokia released the Nokia E71 which was marketed to directly compete with
the other BlackBerry devices offering a full keyboard and cheaper prices.Nokia announced
in August 2009 that they will be selling a high-end Windows-based mini laptop called the
Nokia Booklet 3G. On September 2, 2009, Nokia launched two new music and social
networking phones, the X6 and X3. The Nokia X6 features 32GB of on-board memory with
a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia
X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device that comes with
stereo speakers, built-in FM radio, and a 3.2 megapixel camera.On September 10, 2009,
Nokia unveiled a new handset 7705 Twist, a phone with a sports square shape that swivels
open to reveal a full QWERTY keypad. The new mobile, which will be available exclusively
through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands
and weighs around 3.44 ounces.

Evolution of the Nokia Communicator. Models 9000, 9110, 9210 and 9500 shown.

In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to
open a new plant near the city in Jucu commune.[12][79][80] Moving the production from the
Bochum, Germany factory to a low wage country created an uproar in Germany.

Acquisitions

The Nokia E55, a mobile phone in the business segment

and part of the Nokia Eseries range.

On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became
the major basis to develop the Nokia N-Gage device. On November 16, 2005, Nokia and
Intellisync Corporation, a provider of data and PIM synchronization software, signed a
definitive agreement for Nokia to acquire Intellisync. Nokia completed the acquisition on
February 10, 2006. On June 19, 2006, Nokia and Siemens AG announced the companies
would merge their mobile and fixed-line phone network equipment businesses to create one
of the world's largest network firms, Nokia Siemens Networks.[98] Each company has a 50%
stake in the infrastructure company, and it is headquartered in Espoo, Finland. The
companies predicted annual sales of €16 bn and cost savings of €1.5 bn a year by 2010.
About 20,000 Nokia employees were transferred to this new company.On August 8, 2006,
Nokia and Loudeye Corp. announced that they had signed an agreement for Nokia to
acquire online music distributor Loudeye Corporation for approximately US $60 million.
The company has been developing this into an online music service in the hope of using it to
generate handset sales. The service, launched on August 29, 2007, is aimed to rival iTunes.
Nokia completed the acquisition on October 16, 2006. In July 2007, Nokia acquired all
assets of Twango, the comprehensive media sharing solution for organizing and sharing
photos, videos and other personal media. In September 2007, Nokia announced its
intention to acquire Enpocket, a supplier of mobile advertising technology and services. ]In
October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, a U.S.-
based supplier of digital mapping data, for a price of $8.1 billion. [5][104] Nokia finalized the
acquisition on July 10, 2008. In September, 2008, Nokia acquired OZ Communications, a
privately held company with approximately 220 employees headquartered in Montreal,
Canada. On July 24, 2009, Nokia announced that it will acquire certain assets of cellity, a
privately owned mobile software company which employs 14 people in Hamburg, Germany.
The acquisition of cellity was completed on August 5, 2009. On September 11, 2009, Nokia
announced the acquisition of "certain assets of Plum Ventures, Inc, a privately held
company which employed approximately 10 people with main offices in Boston,
Massachusetts. Plum will complement Nokia’s Social Location services". On March 28, 2010,
Nokia announced the acquisition of Novarra, the mobile web browser firm from Chicago.
Terms of the deal were not disclosed.Novarra is a privately-held company based in
Chicago, IL and provider of a mobile browser and service platform and has more than 100
employees. On April 10, 2010, Nokia announced its acquisition of MetaCarta, whose
technology was planned to be used in the area of local search, particularly involving location
and other services. Financial details of acquisition were not disclosed.

T The Nokia N900, a Maemo 5 Linux based mobile

Internet device and touchscreen smartphone from Nokia's Nseries portfolio.

Mobile Phones
Mobile Phones is responsible for Nokia's portfolio of affordable mobile phones, as well
as a range of services that people can access with them, headed by Mary T. McDowell.[112]
This unit provides the general public with mobile voice and data products across a range of
devices, including high-volume, consumer oriented mobile phones. The devices are based on
GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies.In the first quarter of 2006
Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only
the world's leading supplier of mobile phones and digital cameras (as most of Nokia's
mobile telephones feature digital cameras, it is also believed that Nokia has recently
overtaken Kodak in camera production making it the largest in the world), Nokia is now also
the leading supplier of digital audio players (MP3 players), outpacing sales of devices such
as the iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440
million mobile phones which accounted for 40% of all global mobile phones sales.
The Nokia E90, a Symbian smartphone from Nokia's Eseries portfolio.

Markets
Markets is responsible for Nokia's supply chains, sales channels, brand and marketing
functions of the company, and is responsible for delivering mobile solutions and mobile
phones to the market. The unit is headed by Niklas Savander.

Subsidiaries
Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia
Siemens Networks and Navteq.[112] Other notable subsidiaries include, but are not limited
to Vertu, a British-based manufacturer and retailer of luxury mobile phones; Qt Software,
a Norwegian-based software company, and OZ Communications, a consumer e-mail and
instant messaging provider.Until 2008 Nokia was the major shareholder in Symbian
Limited, a software development and licensing company that produced Symbian OS, a
smartphone operating system used by Nokia and other manufacturers. In 2008 Nokia
acquired Symbian Ltd and, along with a number of other companies, created the Symbian
Foundation to distribute the Symbian platform royalty free and as open source.

Nokia Siemens Networks

Nokia Siemens Networks (previously Nokia Networks) provides wireless and fixed
network infrastructure, communications and networks service platforms, as well as
professional services to operators and service providers.Nokia Siemens Networks focuses
in GSM, EDGE, 3G/W-CDMA and WiMAX radio access networks; core networks with
increasing IP and multiaccess capabilities; and services.On June 19, 2006 Nokia and
Siemens AG announced the companies are to merge their mobile and fixed-line phone
network equipment businesses to create one of the world's largest network firms, called
Nokia Siemens Networks.The Nokia Siemens Networks brand identity was subsequently
launched at the 3GSM World Congress in Barcelona in February 2007.As of March 2009,
Nokia Siemens Networks serves more than 600 operator customers in more than 150
countries, with over 1.5 billion people connected through its networks.
The Nokia 5800 XpressMusic, a touchscreen smartphone and portable entertainment
device which emphasizes music and multimedia playback.

Navteq
Navteq is a Chicago, Illinois-based provider of digital map data and location-based
content and services for automotive navigation systems, mobile navigation devices,
Internet-based mapping applications, and government and business solutions. Navteq was
acquired by Nokia on October 1, 2007. Navteq’s map data is part of the Nokia Maps online
service where users can download maps, use voice-guided navigation and other context-
aware web services. Nokia Maps is part of the Ovi brand of Nokia's Internet based online
services.

Corporate governance
The control and management of Nokia is divided among the shareholders at a general
meeting and the Group Executive Board (left) under the direction of the Board of
Directors (right). The Chairman and the rest of the Group Executive Board members are
appointed by the Board of Directors. Only the Chairman of the Group Executive Board can
belong to both, the Board of Directors and the Group Executive Board. The Board of
Directors' committees consist of the Audit Committee,the Personnel Committee and the
Corporate Governance and Nomination Committee.The operations of the company are
managed within the framework set by the Finnish Companies Act, Nokia's Articles of
Association and Corporate Governance Guidelines, and related Board of Directors adopted
charters.

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