History Nokia Corporationof Nokia — one of the most improbable sagas about business. As wrote the BusinessWeek magazine, in the early nineties the Finnish conglomerate problems, very far from cellular communication, disturbed: then sales volume to the Soviet Union which was on the threshold of disintegration … toilet paper began to decrease sharply. And already by the end of the millennium the same Finns, having reoriented on production of cell phones, exceeded in the market, new to themselves and Ericsson and Motorola. Quickly enough Nokia became one of the leading players of the world market of telecommunications and also one of the richest European companies. But it was very difficult to keep at peak...
- The main article about the company: Nokia
Absorption and asset sale
Main article: Absorption and asset sale of Nokia
Revenue development and profits
Main article: Financial performance of Nokia
Pekka Lundmark is the new CEO of Nokia
On March 2, 2020 Nokia announced change of the CEO. The Bloomberg agency connects it with the fact that the Finnish company loses Huawei and Ericsson in the market of telecommunication equipment for a 5G networks so far. Read more here.
Registration more than 3000 patent requests for technology 5G
On March 24, 2020 the Nokia company announced registration at the European institute of telecommunication standards (ETSI) of more than 3000 patent families which are important for standard 5G.
According to the company, Nokia actively cooperates with organization 3GPP in the development area of standards 5G allowing to develop networks of mobile communication of fifth generation. 3GPP represents partner consolidation of seven standartoobrazuyushchy organizations, including ETSI. Nokia made a contribution to acceptance of the first packet of global standards of compatibility for a 5G and now works on the following packet of standards.
Progress of Nokia in the field of innovations and standardization was result of big capital investments in Research and Development. For the last two decades the company invested in scientific research and design developments more than 129 billion euros, and for only one 2019 – about 4.4 billion euros. Together with the last requests the portfolio of the patents of Nokia having key value for standards of cellular communication (Standard Essential Patents, SEP) and, in particular, for standards 5G, exceeded a level in 3400 patent families. For the last five years this portfolio increased more than twice. At the same time for March, 2020 Nokia has the biggest market share of the SEP patents for GSM, 3G, 4G and 5G technologies, including the patents which are important especially for standards 5G. The majority of patents were developed by specialists of Bell Labs Nokia. The division of Technologies Nokia is engaged in management and licensing of these patents. For March, 2020 his clients are more than 200 licensees, including most leading manufacturers of smartphones and a set of automobile brands.
Nokia shows complex approach to technologies 5G. In addition to wireless networks and technologies of access, the company is engaged in technologies fronthaul, backhaul and optical transport network systems. Recently Bell Labs Nokia was announced a world record in the field of fiber-optical technologies which will allow to increase the speed and capacity of future 5G networks. Researchers of Bell Labs Nokia performed data transmission on one bearing with a speed of 1.52 Tbit / with at distance more than 80 km on one standard single-mode fiber. It is equivalent to simultaneous stream transfer of one and a half million video clips of YouTube.
Process of standardization of a 5G is under management 3GPP. Within 3GPP there is a collective development of technical specifications and the choice of technologies from what is offered by developers of innovations. The products meeting the developed standards will be compatible to products of other producers that considerably will expand freedom of choice for users.
| ||Nokia created a set of fundamental technologies which are used practically in all mobile devices, the digital systems and networks. These innovations have crucial value for industrial Internet of Things. We standardize these innovations to provide their universal acceptance and use. First of all advantages of a 5G consist in sharp expansion of capacity for end users, however in process of emergence of technologies and network architectures of a 5G will create opportunities for application development for industrial enterprises and the industries. Finally complex 5G networks will become the most important support of the Fourth industrial revolution. And Bell Labs Nokia will become at the head of these conversions.|
Marcus Weldon, the director of Nokia of technologies and the president of Bell Labs Nokia told
| ||I am very glad that our scientific and design efforts create opportunities for users and for an industrial technology ecosystem, especially now when we enter a 5G era.|
told Jenni Lukander, the president of Technologies Nokia
Set hundreds of specialists to accelerate development of a 5G products
All new specialists who joined Nokia work in Finland, namely in Oulu and also in Tampere and Espoo. 240 new employees began to work in division on product output for telecommunication networks. Many of the invited specialists were engaged in development of chips for a 5G equipment, said in the company.
Earlier in 2019 the president of telecommunication division of Nokia Tommi Uitto in a conversation with the Helsingin Sanomat edition reported that the company involves new specialists to development of a 5G technologies. The company began to gather quicker personnel how Uitto headed the main division in the company, having replaced on this post of Mark Ruan.
| ||Approximately a year ago I replaced the management of telecommunication division. At the same time I wanted to be convinced that we have correct understanding and the purpose of how we will act on a 5G market. I am convinced that now we have all this — Helsingin Sanomat general told Nokia Rajiv Suri, commenting on appointment of that time.|| |
Strengthening recruiting, Nokia expects improvement of a financial position in the light of the future deployment of a 5G networks. The company actively develops appropriate technologies, testing them with the largest operators and participants of the telecommunication market. By the end of October, 2019 of Nokia signed 48 delivery contracts of the equipment for a commercial 5G networks. 15 such networks are already started.
Nokia states that the company more competitors spends money for development a solution 5G, and these investments do not pay off yet.
Set of soldiers in resignation
Cooperation with Orange and SNCF on studying of opportunities of a 5G for loading of HD video
On April 30, 2019 it became known that the Orange company in partnership with SNCF and Nokia studies possibilities of use of a 5G for providing high-speed loading of HD video to passengers of service. Read more here.
Opening of network of the centers of cognitive cooperation
On February 18, 2019 it became known that Nokia announced network of the centers of cognitive cooperation (Cognitive Collaboration Hubs). These centers created for data specialists will strengthen cooperation between Nokia, operators and the enterprises and will create uniform space for development of services using artificial intelligence. One of such services – Driver Behavior Analytics (the analysis of behavior of the driver) – increases security on roads using the analysis of behavior of drivers and road conditions in real time. The open centers will offer users a hosting on the cognitive AVA Nokia platform to accelerate entry of operator services into the market and to increase payback of the solutions connected with data analysis.
The centers of cognitive cooperation are created taking into account the positive experience got when forming the Centers of cooperation in cloud solutions (Cloud Collaboration Hubs Nokia).
The centers will help operators to select correctly development strategies and to solve important problems using analytic functions and artificial intelligence technologies (Artificial Intelligence, AI). The developers using |agile methodology will create, test together and quickly – within several weeks – to implement services. Operation of networks, increase in their performance, expansion of the user functionality and monetization of data can be typical scopes for these services. One more important area – 5G networks. For February, 2019 Nokia cooperates with a number of the American operators in the field of use of machine learning for network planning optimization of fifth generation. This approach, in particular, will help to define correctly points of placement of base stations and a configuration of antenna Massive MIMO technology.
| ||Telecom operators are very interested in use of artificial intelligence for optimization of networks and strengthening of customer relations. The Cognitive Collaboration Hubs Nokia centers will help to implement these plans. They create the general space for cooperation of operators, partners and the enterprises who will be able to develop together solutions with functions of artificial intelligence on the basis of experience in the field of telecommunications and data processing.|| |
In many countries operators successfully use the cognitive services created on the basis of the listed methods. So, for example, in Turkey Nokia and Türk Telekom companies are tested machine learning technology and artificial intelligence in mobile networks of the last generation and the fixed networks using the MIKA Nokia virtual assistant on the cognitive AVA Nokia platform.
Nokia also announced service for increase in traffic safety and convenience of passengers under the name Driver Behavior Analytics. This service in real time analyzes the data arriving from normal sensors and on this basis generates useful information for state bodies, the automotive industry and commercial enterprises. This solution can transfer to the smartphone with the installed proprietary application useful information about aggressive driving, bad road conditions and dangerous intersections.
Nokia and Ericsson lose Huawei, despite problems of the Chinese company
At the end of December, 2018 it became known that competitors have Huawei — Ericsson and Nokia — it is impossible to use failures of the Chinese company for strengthening of positions in the market and development of the advanced telecommunication equipment. In more detail about it here.
Creation of uniform telecom division before start of a 5G
On November 22, 2018 Nokia announced creation of division of Access Networks which included business on release of the equipment for the mobile and fixed communication networks. The Finnish company carries out reorganization within preparation for mass deployment of networks of fifth generation (5G) in the world.
The head of the structure, largest in Nokia — Mobile Networks (generates to vendor about 30% of revenue) — Marc Rouanne leaves the company. Its duties will be transferred to Tommi Uitto who in Nokia is called "the expert in radio technologies".
Mark Ruan who came to Nokia from Alcatel-Lucent in 2008 in the Finnish company was responsible for development and sale of a 5G technologies. Tommie Uitto directed questions of sales of products for mobile networks from the moment of sale of Alcatel-Lucent of Nokia company for 15.6 billion euros in 2016.
Mark Ruan became the second high-ranking head who left Nokia in the fall of 2018. In October the company was left by the head of patent business Ilkka Rahnasto, the Reuters agency notes.
| ||Having created the uniform organization Access Networks including the mobile and fixed businesses we will be able to improve our focus on clients, to simplify a management structure and to increase efficiency of all our product portfolio — the CEO of Nokia Rajiv Suri said.|| |
The president of newly made division of Access Networks will be elected later. Structural changes in Nokia will become effective on January 1, 2019.
The company says that the announced changes, including personnel, are directed to that the organization structure corresponded to the strategy of Nokia. The producer of telecommunication equipment as a result of reorganization strengthened top management and strengthened positions before an era of a 5G, noted in Nokia.
Dismissal of "thousands" of employees for development of a 5G
On October 25, 2018 Nokia announced the next mass layoffs in the company. The Finnish producer of telecommunication equipment continues to invest in development of the equipment and services for networks of fifth generation (5G) therefore it is forced to save, including on employees.
According to CNBC TV channel with reference to general Rajiv Suri's Nokia, within two years will reduce "thousands" of jobs worldwide. How many employees will be left without work and to what regions the program of dismissals will extend, the head of the company did not specify.
| ||We did not decide on the volume of the moved-away personnel yet, but we will begin to work on it and we will make breakdown by the countries at the right time to open digits — Suri said.|| |
According to him, the telecom is won by the one who works with the minimum costs and has "the correct structure of low costs".
Nokia liquidates a part of the state within the program assuming reduction of annual expenses on 700 million euros by the end of 2020. It will follow other program of economy: in 2016 after purchase by the competing Alcatel-Lucent for $18 billion in 2016 Nokia set the task of decrease in annual operating costs of 1.2 billion euros due to reduction of number of the crossed products, services and sales specialists. This program will come to the end in 2018.
On October 25, 2018 Nokia announced intentions at first to reduce operating costs of 500 million euros, and then to bring an indicator to 700 million euros by "considerable reduction of functions of the centralized support" and "sharp reduction of research and development of outdated products".
| ||Even if these steps correct for our business, we do them not with a light heart, considering influence on our employees — Rajiv Suri emphasized.|| |
===Creation of joint venture with Rostelecom
On September 24, 2018 it became known of creation joint the enterprises of the companies Rostelecom and Nokia — "RTK are Network technologies". It will focus on production of the software and the equipment for communication networks in the conditions of import substitution policy. Technologies of Nokia also domestic solutions will form a basis for developments. In more detail here.
Europe gave to Nokia the credit of 500 million euros for development of a 5G
On August 27, 2018 Nokia announced receiving the European Investment Bank of the credit in the amount of 500 million euros for development of networks of fifth generation (5G). The loan was approved in the European fund of the strategic investments.
| ||The credit will be utilized for acceleration of development and development of technology 5G - the new standard of mobile communication — noted in Nokia.|| |
As reminds Reuters news agency, earlier in 2018 the European Investment Bank provided to the Swedish competitor of Nokia — Ericsson company — on the same purposes of means in the amount of 250 million euros. At the same time conditions of agreements with the companies differ, explained in bank.
Annually Nokia directs up to 4 billion euros to research and development, and the most part of this amount arrives on technology 5G.
| ||We should understand that China and the USA quickly go to a 5G. It is very important that the European companies participated in this race... The rest of the world caught up, and then and was ahead of us on 4G. Now we need to show that our flagman companies can compete not only in Europe, but also on the international scene — the vice president of the European Investment Bank Alexander Stubb in a conversation with the Helsingin Sanomat edition said.|| |
According to the CEO of Nokia Rajeev Suri, the loan granted by Europe will help the company not only with researches in the field of a 5G networks, but also will promote preserving of dynamics of involvement of new clients. The European Investment Bank supports opinion of Nokia that the technology 5G appears earlier, than it was expected, he added.
The European Investment Bank considers that the credit will urge on further investments at the rate to 1.5 billion euros among the companies, small and average on value, and will help Nokia to become stronger with France, Finland, Poland, Germany and other countries.
Sale of 3.3% of stocks to the Finnish state fund Solidium
On March 13, 2018 the Finnish state investment company Solidium announced purchase of 3.3% of stocks of Nokia for 844 million euros (more than $1 billion). This transaction the state will strengthen influence on the Finnish producer of telecommunication equipment. Read more here.
Patent agreement with Huawei
On December 21, 2017 Nokia signed the patent agreement with one large producer of phones — Huawei. Experts estimate annual earnings of the Finnish company from this transaction at 100 million euros that is two and a half times less than payments from Apple.
Huawei undertook to pay regularly Nokia of a royalty for use of patents, since the fourth quarter 2017. Besides, the Chinese company will make a single payment for benefit of Nokia.
Financial terms of transaction do not reveal. By estimates of the analyst of Inderes research company Mikael Rautanen, within the licensing agreement of Huawei more than 100 million euros whereas Apple, according to estimates of the same expert, pays 250 million euros will annually list Nokia.
| ||It is the important transaction as now Nokia has agreements with all large producers of phones. Problems in the telecommunication market remain, but the growing patent revenue compensates it — Rautanen who set the rating of stocks of Nokia at the buy level reported.|| |
Are not specified in all cases of contract detail. It is known only that partners make regular payments for benefit of Nokia, and the last grants the right to use the patents which among other things allow to reduce the number of component parts in smartphones, to prolong the battery life of devices and to improve acceptance of a signal. This business makes for Nokia the most part of profit whereas over 90% of revenue are concentrated on sales of telecommunication equipment and the software.
After the statement for the transaction with Huawei of an action Nokia rose in price for 2.1%. Since the beginning of 2017 on December 21 of the company decreased by 14%.
Dismissals after purchase of Alcatel-Lucent
Nokia confirmed in June, 2017 the intention to reduce 170 official positions in Finland within a close up of the cost reduction taken after megapurchase of Alcatel-Lucent for 16.6 bln. dollars in 2015.
The company reduced 960 official positions in Finland last year and reported that it is going to dismiss 1400 more employees in Germany.
In 2016 Nokia announced that it is going to reduce thousands of official positions around the world within the global plan of the cutting of costs by 1.3 bln. dollars accepted after purchase of Alcatel-Lucent. The company can dismiss up to 15 thousand people from the total number of personnel (including Alcatel-Lucent) which is about 101 thousand people, i.e. more than 14% of all state.
Nokia set as the purpose by 2018 to lower current costs approximately on 1 bln. dollars, aiming to reach economy of production costs, expenses on the real estate and also in the field of services, purchases and a supply chain.
It is expected that the announced dismissals and reductions will take place in divisions where there is an overlapping — in Research and Development and also in regional representative offices and sales offices.
Settlement of the conflict with Apple
In addition to claim settlement, the arrangement assumes that Nokia will provide to Apple a number of products and services in the field of network infrastructure, and Apple will continue to sell fitness structures of Nokia in the shops (the Withings company which Nokia purchased in 2016 is engaged in their release). Besides, the companies will cooperate during creation of medical devices.
The financial component of the agreement is not disclosed, but it is known that it is about hundreds of millions of dollars which Nokia will receive in the form of advance payment and additional assignments during the term of the agreement about licensing.
| ||This agreement is of great importance for Nokia and Apple — Maria Varsellona, the head of legal division of Nokia responsible for questions of licensing says. — We with Apple now not rivals in court, but the business partners working for the benefit of our clients.|| |
At the end of 2016 Nokia submitted to Apple claims to several courts, including German and American. The Finnish producer of telecommunication equipment claimed that Apple violated 32 patents which concern different elements of mobile devices, including the display, user interface, coding of video and the antenna.
This step of Nokia became the answer to the antimonopoly claim of Apple in which the American corporation accused the opponent and several other companies of illegal transfer of patents for the purpose of racketing of excessive patent payments. In May, 2017 all claims were withdrawn.
Claims to Apple for violation of 32 patents
On December 22, 2016 it became known of new claims of Nokia company in the field of observance of patent law by Apple company.
The press service of Nokia announced violation of Apple of 32 patents belonging to the Finnish company, including the rights to production technologies of displays, the user interface, the software, antennas, chips and coding of video.
| ||Thanks to our regular investments into research and development, into Nokia companies created or promoted creation of many fundamental technologies which are used in modern mobile devices, including products of Apple. After several years of negotiations and attempts to reach the agreement on use of Apple of these patents, now we take measures for protection of the rights.|
Ilkka Rahnasto, head of patent department of Nokia
Claims are submitted in a number of district courts of Germany, to district court East the Districts of State of Texas, USA. The company announced readiness to submit claims to courts of other countries.
History of the conflict of Nokia and Apple originates in 2009, then the Finnish vendor accused the American competitor of infringement of patent for the technologies used in devices of mobile communication.
Then Nokia demanded a royalty in the amount of 1-2% ($6-12) from each sold iPhone. In 2011 the parties signed the license agreement, having completed disputes over 46 patent complaints of Nokia.
Return to the market of phones
On December 1, 2016 Nokia officially announced return to the market of mobile phones. However, the Finnish company not will neither develop devices, nor to sell them — it will act only as the licensor.
According to the message of Nokia, the transaction announced on May 18, 2016 selling business on release of the normal Microsoft mobile phones of the Finnish company HMD Global and Chinese FIH Mobile (enters into the Foxconn Technology group) is closed behind $350 million.
Under the terms of this agreement, HMD Global acquired the right to use a brand of Nokia and the corresponding intellectual property within 10 years. In 2017 HMD Global will begin release of normal push-button telephones under the name of Nokia, and slightly later will provide smartphones also tablets. In particular, an exit Android-smartphones Nokia is planned for the first half of 2017, reports the agency Reuters with reference to the statement of HMD Global.
Nokia will receive from HMD Global runtime royalty fees for each sold mobile device under its brand. Royalty rate is not specified. Nokia notes that the company is not either an investor, or the shareholder of HMD Global. Phones and Nokia tablets will be made at the Foxconn enterprises.
The CEO of HMD Global Arto Nummela says that the company wants to become some key players in the market of smartphones in many respects thanks to the established partner relations with mobile operators and retailers. HMD Global is founded by the former top managers of Nokia.
| ||Really we see opportunities to make a little room for us on shelves of shops. Consumers can be fond of different smartphones, but a question in whether they love these brands and are devoted to them — Nammela said.|| |
Plans of return to the market of digital equipment
According to the Planet Today edition, the Nokia company conducts negotiations with the Finnish Bittium on selection of production capacities for release by a brand of the devices in the territory of Finland.
If the transaction takes place, Nokia should complete the contract with Foxconn (Hon Hai Precision Industry) - she is busy with production of the N1 tablet under the Finnish brand. Besides, reported the edition - if partners compound, consumers will see the first copies of the equipment of Nokia until the end of 2016.
On April 6, 2016 Nokia announced mass reduction of jobs in 30 countries of the world. The company can dismiss up to 14% of employees.
According to Reuters with reference to the statement of Nokia, in Finland is going to liquidate 1300 working positions, in Germany — 1400. In France works will lose 400 people, however in exchange the company intends to employ 500 people for carrying out scientific research according to arrangements with the French government within the transaction on merger of Alcatel-Lucent there.
| ||The promises made by Nokia upon purchase of Alcatel-Lucent are constrained — the representative of the French labor union CFE-CGC Frederic Aussedat said.|| |
According to sources of the agency Bloomberg, Nokia really did not begin to dismiss people in a mass order in France, having left there about 4200 jobs from which 2500 is R&D-специалисты.
By the beginning of April, 2016 the total number of staff of Nokia is about 104 thousand employees. In Finland, Germany and France 6850, 4800 and 4200 people respectively work. The company did not specify the volume of global personnel reorganization.
Bloomberg, referring to the people familiar with plans of Nokia, reports that the company wants to reduce from 10 to 15 thousand jobs worldwide, i.e. to 14% of the state. It becomes to overcome the problems connected with the difficult market situation and strong competition from Huawei told the edition one of sources.
According to interlocutors of Bloomberg, the CEO of Nokia Rajeev Suri discussed the forthcoming reductions with trade union representatives during the conference call which took place on April 6, 2016. The company management intends to meet workers in several countries in April-May.
Nokia buys Alcatel-Lucent for 15.6 billion euros and creates Nokia Corporation
On April 15, 2015 Nokia Corporation announced purchase of Alcatel-Lucent company. According to the results of this transaction which became the largest for the Finnish vendor the largest producer of telecommunication equipment will appear.
The Nokia company will pay 15.6 billion euros, or 4.12 euros for an action for acquisition of Alcatel-Lucent that is 8% less than its market value as of April 14, 2015. The announced transaction provided to securities of Nokia growth by 2.8% whereas the quotations of Alcatel-Lucent decreased by 9% though on the eve of the announcement of the agreement they jumped by 16%.
As a result of consolidation of Nokia and Alcatel-Lucent the Nokia Corporation company with the state exceeding 110 thousand people was created. Nokia promises not to reduce jobs in addition to those that planned Alcatel-Lucent. Read more here.
Return to the market of smartphones
The message published on the official site on July 13, 2015 Nokia announced return of a brand for the market of smartphones. However, work of the Finnish company in the mobile industry will be carried out in other format, than before.
The representative of Technologies Nokia Robert Morlino on behalf of the company said that he on return to the market of the Nokia mobile phones will be engaged in licensing of the trademark. So the European vendor intends to develop gadgets, to share the technologies and to sell the rights to sale of the offices of other company. The last will have to undertake development and sale of products of Nokia and also to deal with issues of marketing and a customer support. According to such scheme of Nokia together with Foxconn (Hon Hai Precision Industry) distributes Android tablet N1 Nokia.
According to Morlino, Nokia looks for "the world-class partner" who will help the company to return on the market of smartphones. Names of the companies which can potentially render assistance to the Finnish producer, are not specified.
The representative of Nokia noted that the company will be able to release smartphones not earlier than the fourth quarter 2016. Prohibits to make it to the specified term the agreement with Microsoft signed in 2014 and concerning sale of telephone division of Nokia of the American software corporation.
To the middle of 2015 Microsoft refused use of the brand of Nokia in the Lumia smartphones, but still offers normal phones under this brand.
"For 14 years Nokia was the world's largest producer of mobile phones, and the brand of the company became nominal, symbolizing quality, innovations and communication between people. It still has wide recognition among millions of people worldwide, pleasing those people who helped to create this brand. Therefore it is not surprising that constantly there is a question of whether Nokia on the market of mobile devices will return. On it it is difficult to give the answer" — Robert Morlino said, having emphasized that return can be performed only with assistance of the partner.
Sale of mobile business of Microsoft for $7.2 billion
Microsoft confirmed on September 2, 2013 intention to purchase the division of Nokia corporation which is engaged in production of mobile devices. Microsoft and Nokia Corporation companies announced the conclusion of the transaction as a result of which Microsoft will purchase businesses of Nokia on production of devices and services, licenses for the patents belonging to Nokia and also the license for the cartographic services belonging to Nokia. Read more here.
Dynamics of a share of Nokia in the market of cell phones and smartphones
Leaders in sales of mobile phones and smartphones from 1992 to 2018 in animation are lower.
Redemption of a share of Siemens in Nokia Siemens Networks
Transaction amount is 1.7 billion euros. From them 1.2 billion euros will be paid by money, before completion of the transaction. From the moment of the basis the enterprise became one of the largest equipment manufacturers of communication who is used by operators in more than 150 states worldwide. Read more here.
- On April 24, 2012 the Fitch rating agency lowered credit rating of Nokia with BBB-to "garbage" level in BB+ with the negative outlook. Analysts adversely estimate perspectives of the company in 2012-2013.
- In June, 2012 it became known that Nokia is going to reduce 10 thousand jobs worldwide. Within the most large-scale for the last few years reductions of the staff of staff of the company the only plant Nokia in Finland will also be closed. Total number of the reduced jobs since 2010 when Stephen Elop became the head of the company, reached 40 thousand.
Partnership with Microsoft
In February, 2011 intention to leave Nokia in March, 2011 was announced by the head of division of Mobile Solutions Anssi Vanjoki. Besides, the marketing director was appointed. Him became Jerri DeVard.
In the same month Nokia announced the conclusion of the partnership agreement with Microsoft within which in its smartphones the Windows Phone operating system will be used. The share of this operating system in the IV quarter 2010 was reduced to 3%. However for Microsoft this alliance can bring benefit. In 2010 Nokia delivered in total 453 million mobile phones - quite good base for distribution of Windows Mobile.
It was announced that until the end of 2012 business of Nokia will considerably change. To stop falling of a share in the market of smartphones, the company together with Microsoft will develop the new operating system.
New strategy was provided by the CEO of Nokia Stephen Elop. Shortly before it Elop addressed employees with the letter: "The first iPhone appeared in 2007, and we still have nothing comparable. Android is only two years as stepped on the stage — and took over at us the lead. Incredibly".
In the next years smartphones — devices with operating systems where it is possible to load applications of third-party developers will be the engine of the market, Elop is sure. According to IDC, the share of smartphones in deliveries of phones grew from 15.8% in the IV quarter 2009 to 25.1% during the same period of 2010. A problem of Nokia — lack of a global ecosystem like what was created by Google and Apple, Elop is sure. He promises to build such ecosystem with Microsoft in which worked several years. Windows Phone from Microsoft will become basic operation system for Nokia, on its base the new operating system will be created. Hardware solutions, language support and also cartographic service will become a contribution of Nokia. Microsoft will provide Bing search engine to which the system of the online advertizing adCenter will be tied, and app store and mobile content of Nokia will be combined with Microsoft Marketspace.
Nokia will pay Microsoft runtime royalty fees, but promises to compensate it by sharp reduction of the budget on developments which now ($8.1 billion) is four times more, than at Apple. Elop also promises to cut down the staff.
The top manager of Google Vick Gundrota noticed in the personal blog: "You will not make one eagle of two turkey-cocks". For Nokia transition to Windows Phone — the only way to hold a market share, having saved difference from the brands which passed to Android, the director of the Russian office Acer Gleb Mishin considers. He calls alliance Nokia and Microsoft the union weak against strong.
Besides, as stated in the official statement, until the end of 2011 Nokia intends to take off the payroll 3 thousand employees in the USA, Great Britain, Finland, China and India, having transferred them to work in Accenture where they will continue to be engaged in the Symbian operating system.
Accenture is the international consulting and outsourcing company, the old partner of Nokia (the parties cooperate since 1994). In October, 2009 Accenture purchased the Nokia group which is engaged in technical support of the telecom operators and producers using smartphones based on Symbian.
After the staff of Nokia passes into Accenture, they will continue to develop programs for Nokia for outsourcing model. Afterwards, when the company will stop releasing smartphones with Symbian, partners promise to offer developers new perspective positions.
Using the measures stated above in Nokia expect to reduce annual costs by 2013 by €1 billion in comparison with 2010, explained in the press service of the company. The chief executive of Nokia Stephen Elop called staff reduction "severe reality", a compulsory measure on which the vendor should go in order that most finally not to go to a bottom.
During Elop's government it already the second large declaration of staff reduction. The first (1800 people) was made in October, 2010 almost right after change of the head. At the end of 2010 in Nokia about 132 thousand people worked.
Employees who within the next year will be dismissed from the Finnish telecommunication concern Nokia perhaps, will find jobs in the new IT centers which are intensively created now in the homeland of the giant - in the Finnish region of Tampere-Pirkanmaa. Among partners of local authorities in creation of new jobs call such companies as Intel, Google, Palm, Skype, HP, LG, and China Mobile. The most perspective call plans of Intel to create in Tampere the MeeGo center for scientific research and development of this operating system. According to municipal authorities, from 1400 staff of Nokia dismissed in Finland 400-500 people live in Tampere. In total in the region it is necessary to create 2600 jobs for the IT personnel, including within large projects of the EU.
The new head of the company - Stephen Elop
In October, 2010 after Elop's arrival, Nokia the head of development of the MeeGo platform Ari Jaaksi left. Same month the Symbian Foundation organization for the personal reasons founded by Nokia company was left by her head Lee Williams.
Research and development center with Intel
In August, 2010 Intel, Nokia and the Oulsky university (Oulu, Finland) announced opening of a joint research and development center which was a part of the European network Intel Labs Europe including for August, 2010 already 22 centers.
The new center is located in the Center for Internet Excellence complex at the Oulsky university and integrated with the technology Oulu Urban Living Labs park which is the good environment for in-depth studies and implementation of pilot projects, said in the official statement.
The initial purpose of the first joint R&D-центра Intel and Nokia which staff made about 24 scientists will become development of new types of interfaces for mobile devices, including 3D - holograms of the interlocutor which it was possible to see in sci-fi movies earlier. A part of projects will mention the MeeGo platform, and their results will be available within open licenses.
2007: 68 thousand employees
As of the end of 2007 the number of staff of Nokia is made by 68,321 persons.
2006: Creation of JV Nokia Networks and Siemens
In June, 2006 it was announced consolidation of division of Nokia Networks with the relevant telecommunication division of Siemens company. The joint venture with equal shares of Nokia and Siemens will become the world leader taking strong positions in the most important and growing sectors of the market of technologies and services for the fixed and mobile networks of communication.
2005: Ollie-Pekka Kallasvuo is the head of the company
Since October, 2005 the Nokia corporation is headed by Olli-Pekka Kallasvuo.
The 1990th: Hera GSM, a telecom becomes core business
On July 1, 1991 the very first call through commercial network GSM was made by the prime minister of Finland — by the Nokia phone. The project success made an impression on Board of Directors of the company, and a year later Ollila was appointed the CEO of Nokia.
Since 1996 telecommunications became the main field of activity of Nokia company. Not for nothing Finns risked. When Nokia put the resources in GSM, it was moderately successful company from the small country which threw down a challenge to already firmly established infrastructure in which billions of dollars, and to everywhere accepted standard are invested. Soon the company signs agreements on providing 9 more European states with GSM networks. By August, 1997 Nokia delivered GSM systems to 59 operators in 31 countries.
It is necessary to tell that by this time Finland is covered by the deepest decline in production. And in spite of the fact that in the 80th Nokia becomes the Europe's third producer of TVs and also the great popularity is received by satellite receivers of firm and the department which is engaged in production of automobile tires, especially if to consider permanently high quality of all range of the offered products, Nokia was necessary to make a risky choice. In May, 1992 Jorma Ollila who headed the company makes the decision on reduction of all other departments and concentration of scientific and production capacities on telecommunications.
When the company seriously was engaged in release of mobile phones and other telecommunication products, it entered international markets. As a result of in the late nineties Nokia became the market leader of digital technologies of communication.
By 1997 Nokia was a producer of mobile phones practically of all fundamental digital formats: GSM 900, GSM 1800, GSM 1900, TDMA, CDMA and Japan Digital. Thanks to so extensive opportunities of the company it was succeeded to strengthen quickly the positions in Europe and Asia.
In 1998 she announced 70 percent sales growth (210 billion euros) whereas her main competitors Ericsson and Motorola were limited only to messages about decrease in rates of production. Demand for mobile phones continued to grow, together with it also the market share of Nokia grew. In 1999 the company won 27% of the market of mobile phones, and Motorola going the second lagged behind it for the whole 10%.
The 1980th: Mobile phones, NMT standards
The new legislation permitted, by an example of Sweden, installation of mobile phones in cars and connection them to the general network. As in the 1980th years fast expansion in all directions became the main strategy of Nokia, the offered prospects pushed Nokia to resolute actions. And the result did not keep itself waiting: in 1981 the cellular network which covered Sweden and Finland and received the name Nordic Mobile Telephony (NMT) is created. Later it included other countries both in Europe, and beyond its limits. A system was based on technologies of Nokia. Fast development of the industry of mobile phones began. Having appeared in 1981, NMT became the first popular standard of cellular communication.
In 1987 when all released mobile phones were rather heavy and had big dimensions, Nokia released one of the easiest and transportable mobile phones. It allowed to win a considerable part of the market.
Due to gradual consolidation of the European markets in the late eighties, need of development of a uniform digital format of mobile communication, after received the name GSM (Global System for Mobile Communications) ripened.
In 1989 Nokia and two Finnish telecommunication operators created the union to adjust work of the first GSM network. Not to lose a position in competitive struggle with Telecom Finland which owned the long-term, maintained by the state monopoly for distant telephone communication providers of services of analog mobile communication Helsinki Telephone Corporation and Tampere Telephone Company created Radiolinja company. This firm purchased from Nokia infrastructure for the amount of 50 million dollars, even despite the absence of the license for new network. In 1987 Nokia put on the market the first cell phone.
Jorma Ollila invited in Carry Kairamo's Nokia in 1990 headed office of mobile phones of the company. Concerning the new project there was a lot of talk, doubts were raised by everything: from basic need for existence of network to technology questions. And still the command of Nokia trusted in digital trunking and continued the work.
The 1960th: Start of business in electronics
The Nokia company began activity in the Soviet Union in the 60th years.
In 1966 began and in 1967 merge of three enterprises — Nokia, FRW and FRC was finally issued. Oy Nokia Ab represented the industrial conglomerate working in four main directions: forest industry, production of rubber, cables and electronic equipment. The old directions, in particular production of cables, continued to provide profitability of Nokia. Some Finnish observers consider that the management system was taken from the plant on production of cables; and money was brought by rubber industry. And department of electronics helped to revive competitiveness of Nokia on a new round of development of the company.
Still in the sixties the president of Finnish Cable Works Byyorn Westerlund establishes department of electronics which conducts researches in the field of semiconductors. The main personnel of department are the staff of the universities and colleges with whom Westerlund maintained good the relation long ago. The head of department, Curt Vikstedt calling himself "mad about digits" perfectly imagined all perspectives of development of electron coupling and skillfully directed efforts of developers to these, the priority directions. The moods soaring then in air could be characterized the words "all is possible and all needs to be tried".
In 1963 the first radio telephone, and in 1965 – the modem was developed for data transmission. Nevertheless, most telephone exchanges at that time had electromechanical switches and nobody even thought of possible "digitalization" of the equipment. Despite the similar conservatism reigning then in this area, Nokia after all undertakes development of the digital switch on the basis of pulse code modulation (RSM). In 1969 it the first releases RSM-peredayushchee the equipment meeting standards of CCITT (The international consulting committee on telegraph and phone). Transition to a digital telecommunication format became for the company one of the most important strategic decisions, as was confirmed at the beginning of the 70th by release of switch DX 200. Supplied for those times with a computer language of the high level and microprocessors of Intel, it was so successful, as to this day the ideas put in it are the basis for telecommunication infrastructure of the company.
1920: Nokia Group formation
And meanwhile in the United States 'the rubber fever' of the beginning of the 1830th years ended so unexpectedly, as well as began. Many investors lost millions of dollars. In Finland goods from rubber appeared at the end of the 19th century. Footwear and different objects from the rubberized fabric were the first products. At first they were luxury, but very quickly raincoats and galoshes won popularity in the cities and rural areas. Rubber products became accessory not only the consumer, but also business market. Due to the industrialization there was demand for the different equipment that meant the need for various rubber products. In Finland the Finnish Rubber Works (FRW) company was the main producer of such products. When the management of FRW decided to move the production from Helsinki to rural areas, it stopped the choice on section with Nokia nearby. An opportunity to cheap buy the electric power from Nokia became defining, - the river near which there was a plant, served not only decoration of a landscape, but also was a source of the cheap electric power.
In 1912 in the center of Helsinki the company which received later the name Finnish Cable Works opened. The increasing need for electric power transmission and also rapid development of cable and telephone networks provided rapid growth of the company. Running forward, it should be noted that after the end of World War II the firm was practically the monopolist owning vast majority of the Finnish producers of a cable. In 1920 these three firms: Nokia Corporation, Finnish Rubber Works and Finnish Cable Works, were included into the coalition, having created Nokia Group. Participation in this industrial conglomerate assumed opposition of Nokia to social, political and economic events: and 'rough the twentieth', to both Great depression, and invasion of the Soviet Union, and subsequent wars, and payment of a reparation to Moscow.
Though Nokia also lost the corporate autonomy, its name became the general base for three firms soon, and in the same years FRW began to use the name 'Nokia' as the brand. However, soon the third of the companies, Finnish Cable Works (FCW), enticed Nokia into the sector, new to it — construction of power plants.
In 1920 — the 30th years of Nokia was already in the lead on all directions of the activity. Diversification helped firm to have almost without serious consequences heavy times in the economic plan: when some sector of economy was in decline, Nokia survived on the enterprises of other industries.
1865: Opening of paper-mill
The history of Nokia company can be counted since 1865. On May 12, 1865 the Finnish mining engineer Fredrik Idestam got the permission for construction of factory for production of wood pulp at the river the Nokia. The foundation of future Nokia Corporation was so laid. These years rapid growth of the industry had. Industrialization, the need for paper and cardboard for the growing cities and offices grew every day. And already on site factories mills the pulp and paper mill grew. Over time the Nokia plant involved to itself a large number of workers so soon around it the city of the same name - Nokia was formed. The enterprise grew from national scales, paper of the Nokia began to be delivered at first to Russia, then to England, France, and even China. At the end of the 1860th years demand for paper products in Finland many times over exceeded volumes of domestic production because of what import of raw materials from Russia and Sweden increased.
In February, 1871 Nokia Corporation (Aktiebolag Nokia) was founded. The firm surely won the markets of Denmark, Germany, Russia, England, Poland and France. By the way, an important role in a release of Nokia to the international scene was played by business people from St. Petersburg.
- ↑ Development hires 350 workers to speed up 5G Nokia
- ↑ Market reshuffles management with focus on 5G Nokia
- ↑ Confirms 'thousands' of job losses over the next two years after third-quarter profits drop Nokia
- ↑ Huawei gives Nokia full hand of smartphone patent deals
- ↑ of Dismissal in Nokia proceed after purchase of Alcatel-Lucent
- ↑ APPLE AND of NOKIA BECOME IP FRIENDS
- ↑ And Nokia see deeper partnership after ending patent dispute Apple
- ↑ the Revived Nokia attacked Apple because of displays and antennas
- ↑ Brand-phones poised for comeback as HMD takes charge Nokia
- ↑ producer Nokia wants to return itself "nationality"
- ↑ To cut thousands of jobs following Alcatel deal Nokia
- ↑ To Cut as Much as Nokia of 14% of Workforce After Alcatel Deal
- ↑ NOKIA AND ALCATEL-LUCENT TO COMBINE TO CREATE AN INNOVATION LEADER IN NEXT GENERATION TECHNOLOGY AND SERVICES FOR AN IP CONNECTED WORLD
- ↑ Comments on media speculation about mobile devices Nokia
- ↑ [http://www.vedomosti.ru/newspaper/article/254920/obedinenie_slabyh Consolidation weak
- ↑ the History of Nokia