Nokia Corporation

History

Main article: History of Nokia

The history of Nokia is one of the most incredible sagas about business of the 90s of the XX century. As BusinessWeek magazine wrote, in the early 90s, the Finnish conglomerate was worried about problems very far from cellular communications: then sales began to decline sharply in the Soviet Union, which was on the verge of collapse... toilet paper. And by the end of the millennium, the same Finns, reorienting themselves to the production of cell phones, surpassed Ericsson and Motorola in a new market for themselves. Quickly enough, Nokia became one of the leading players in the global telecommunications market, as well as one of the richest European companies.

Following the rise in the early 2010s, there was an equally rapid collapse of the company's business. Key events in the life of the company to this day are here.

Business Lines and Structure

By November 2018, Nokia Corporation produces equipment for cellular and fixed-line operators. In the past, the company produced mobile phones and offered mapping services, but these businesses were sold. Nokia is a public company listed on the Helsinki, Stockholm, Frankfurt and New York exchanges.

By January 2020, Nokia's activities are divided into the following divisions:

• Nokia Networks, which includes the following structures:
  • Access Networks (equipment for networks of a mobile and fixed telephony),
  • Global Services and
  • IP Networks and Applications. DPC transport

• Nokia Technologies (technology licensing and consumer electronics development).

• Nokia Software (software solutions)

"The future of medicine is remote surgery with data transfer over almost latency-eliminating networks of the standard, 5G as well as miniature wearable gadgets that continuously monitor the state of health. Such devices will allow doctors to prevent many diseases before they even develop Nokia , "the director Rajiv Suri general said during a speech in Davos in January 2018.

As a confirmation of his words, Suri cited as an example a wearable gadget being developed at Nokia, which will constantly monitor the composition of the body's blood for the presence of cancer biomarkers and, with the slightest suspicion, inform both the person and the attending physician about it. Also, the Finnish company is working on the creation of a special "sleeve" that will constantly monitor the levels of cholesterol, lactic acid and blood glucose. For these purposes, Nokia acquired a European manufacturer of smart medical devices, Withings.

Business in Russia

Main article: Nokia Russia

Nokia Corporation began operations then in the USSR in the 60s.

Since 1993, Nokia's interests in St. Petersburg have been represented by Nokia Switching Systems (NSS). In 1997, ZAO Nokia was established with its head office in Moscow. Nokia has offices in key regions of Russia, as well as the CIS countries.

Performance indicators

Main article: Nokia financial performance

2023:11% drop in revenue to €22.26 billion

In 2023, Finnish telecommunications equipment manufacturer Nokia received revenue of €22.26 billion. This is about 11% less than the result for the previous year, when sales reached €24.91 billion. The corresponding indicators are reflected in the financial report published on January 25, 2024.

Nokia notes that the reduction in revenue is due to changed business models of customers who faced difficulties in the context of the emerging macroeconomic situation and high inflation. The company's net annual profit was recorded at €679 million. For comparison: in 2022, Nokia earned €4.26 billion. Thus, the fall was at the level of 84%.

Nokia's network infrastructure solutions division received €8.04 billion in revenue in 2023 against €9.05 billion a year earlier. The segment of mobile networks also recorded a decrease in sales on an annualized basis: the figure decreased from €10.67 billion to €9.8 billion. In the direction of cloud and network services in 2023, revenue was shown in the amount of €3.22 billion, while a year earlier sales were estimated at €3.35 billion. In the Nokia Technologies group, which is responsible for licensing technologies and developing consumer electronics, sales fell from €1.6 billion to €1.09 billion.

From a geographical point of view, Nokia's revenue in the Asia-Pacific region in 2023 amounted to €2.29 billion (minus 13% year-on-year). The European region accounted for €5.87 billion (minus 12% compared to 2022), China - €1.3 billion (minus 18%). Sales in India, by contrast, jumped 120%, reaching €2.84 billion. Revenue in Latin America was recorded at €1.05 billion (minus 14%), in North America - €5.73 billion (minus 32%). In the Middle East and Africa, sales amounted to €2.05 billion (plus 4% year-on-year).^[1]

Acquisitions and divestment

Main article: Acquisitions and sale of Nokia assets

In its history of development from a paper mill to a telecom infrastructure supplier, Nokia has made many transactions for mergers and sales of its own assets.

Interesting facts

• Nokia does not use the number 4 in the names of phone models intended for Asian markets, since in many regions of Southeast and East Asia, the number 4 is considered unhappy.

• The first Symbian-based Nokia communicators used the AIKON graphical interface, or NOKIA vice versa.

Links

• Official website of the company in Russia

Notes