Nokiais a Finnish multinational corporation founded on 12 May 1865 as a single paper mill operation. Through the 19th century the company expanded, branching into several different products. In 1967, the Nokia corporation was formed. In the late 20th century, the company took advantage of the increasing popularity of computer and mobile phones. However, increased competition and other market forces caused changes in Nokia's business arrangements. In 2014, Nokia's mobile phone business was sold to Microsoft.
The name "Nokia" is derived from the town Nokia and the Nokianvirta River which was aside the factory. The commercial entities that preceded the modern-day Nokia company included Nokia Ab (Nokia company); Suomen Gummitehdas Oy (Finnish Rubber Works Ltd); and Suomen Kaapelitehdas Oy (Finnish Cable Works Ltd).[1]
In 1865, the mining engineer, Fredrik Idestam established a ground wood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland. Tampere was then part of the Russian Empire.[1] In 1868, Idestam built a second mill near the town of Nokia. Nokia lies 15 kilometres (9.3 mi) west of Tampere, by the Nokianvirta river. The river had better hydropower resources than those at Tampere.[2] In 1871, Idestam and Leo Mechelin, a statesman and Idestam's friend, transformed Idestam's enterprises into a public limited company called Nokia Ab.[2]
In the late 1800s, Mechelin wanted to expand the company into the electricity business. However, Idestam refused. In 1896, Idestam retired and Mechelin became the company's chairman. He remained chairman from 1898 to 1914. During this time, Mechelin persuaded shareholders to allow the company to enter the electricity business.[2] In 1902, Nokia commenced electricity generation.[1]
In 1932, the Finnish Rubber Works also acquired the Suomen Kaapelitehdas Oy (Finnish Cable Works). The cable works had been founded in 1912 by Arvid Wickstrm. His company produced telephone, telegraph, and electrical cables.[1][6]
In 1963, after 16 years as a technical director, Verner Weckman became the president of the Finnish Cable Works company. Weckman was a wrestler and was Finland's first Olympic Gold medallist.[7] After World War II, Finnish Cable Works supplied cables to the Soviet Union as part of its war reparations. This gave the company a foothold for later trade.[7]
In 1967, Nokia Corporation was formed through the merger of the three companies.[8] The new company manufactured products including paper items, car and bicycle tires, rubber boots, communications cables, televisions and other consumer electronics, personal computers, generators, robotics,[9] capacitors, Military technology and equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminum and chemicals.[10][11]
In 1960, a cable division of the Nokia group had been formed. In 1962, it produced a pulse height analyzer used in nuclear power plants.[11] In 1967, an electronics division within the Nokia corporation was formed. It operated for the next fifteen years, sometimes at a loss. Nokia researchers were encouraged to develop their own projects. This may have contributed to Nokia's focus on mobile phone technologies.[12]
In the 1970s, Nokia produced the Nokia DX 200, a digital switch for telephone exchanges. The DX 200 became the workhorse of the network equipment division. Its architecture allowed it to be further developed into other switching products.[13] For example, in 1984, the development of an exchange for the Nordic Mobile Telephone network was begun.[14] The network equipment division was merged with a Finnish State entity to form "Telefenno". In 1987, the state sold its shares in Telefenno to Nokia and in 1992, the name was changed to Nokia Telecommunications.[15]
Prior to cellular mobile telephony, there was mobile radio telephony. In the 1960s, Nokia had started producing commercial and military mobile radio telephones. From 1964, Nokia had developed VHF radios in collaboration with Salora Oy. From 1966, Nokia and Salora had developed ARPs (Autoradiopuhelin or radio car phones). In 1971, this technology became the first commercially available mobile phone network in Finland and in 1978, it offered 100 percent coverage in Finland.[17] In the 1970s and 1980s, Nokia developed the Sanomalaitejrjestelm (messaging system), a digital, portable and encrypted text-based communications device for the Finnish Defence Forces.[18]
In 1987, the Soviet leader Mikhail Gorbachev was seen using a Mobira Cityman in Helsinki. The phone developed the nickname, the "Gorba".[20] In 1989, Nokia-Mobira Oy was renamed "Nokia Mobile Phones".
Nokia contributed to the development of the GSM 2G.[23] It was able to carry data (computing) as well as voice traffic. Nordic Mobile Telephony (NMT) was an early provider of international roaming. In 1987, GSM 2G became the new European standard for digital mobile technology.[24][25]
In 1989, Nokia delivered its first GSM network to the Finnish operator Radiolinja.[26] On 1 July 1991, in Helsinki, the first telephone call on the GSM G2 network was made by Harri Holkeri, the Prime Minister of Finland. He used a prototype Nokia GSM phone to make the call.[26] In 1992, the first GSM phone, the Nokia 1011, was made commercially available.[26][27] The model number, "1011" refers to its launch date on 10 November 1992.[27] In 1994, a branding ringtone, the Nokia tune, was included with the Nokia 2100 series.[28]
The GSM 2G network and mobile phones provided improved voice calls, international roaming and support for new services such as text messaging (Short Message Service (SMS)).[26] In 2008, the GSM 2G network had approximately 3 billion users. There were at least 700 mobile phone commercial providers in 218 nations or territories. There were 15 mobile phone connections per second and 1.3 million mobile phone connections per day.[29]
In the 1980s, Nokia's computer division "Nokia Data" produced a series of personal computers called the "MikroMikko".[30] It was aimed at the business market. MikroMikko 1, was released on 29 September 1981.[31] Its competitor was the IBM personal computer. In 1991, Nokia Data was sold to a British company, International Computers Limited (ICL).[32]
Nokia produced Cathode ray tubes (CRT) and thin film transistor liquid crystal displays (TFT LCDs) for personal computers and other applications. In 2000, Nokia sold its display products division to ViewSonic.[33] However, in August 2009, Nokia released the Nokia Booklet 3G mini laptop which it continued for a short time.[34] Other abandoned Nokia products include DSL modems and digital set-top boxes.
In the 1980s under the chief executive officer (CEO) Kari Kairamo, Nokia expanded, mostly through acquisitions. In the late 1980s and early 1990s, however, Nokia corporation experienced financial difficulties. Losses were made in the television manufacturing division.[35] In 1988, Nokian Tyres became a separate entity.[36] Nokia's paper division was sold in 1989. In 1990, Nokian Footwear was a separate entity.[4] During the rest of the 1990s, Nokia divested itself of all other businesses.[37]
In 1988, Kairamo committed suicide. Following his death, Simo Vuorilehto became Nokia's chairman and CEO. From 1990 to 1993, Finland was in recession.[38] Vuorilehto made major changes to the Nokia corporation. The telecommunications division was stream-lined. The television and personal computing divisions were sold.[39]
In 1992, Jorma Ollila became CEO. He made telecommunications Nokia's sole concern.[37] International sales increased relative to those in Finland.[40][37] By the mid-1990s, Nokia's supply of mobile telephones could not meet demand.[41] Changes to Nokia's supply chain were made.[42] Between 1996 and 2001, Nokia's revenue increased from 6.5 billion euros to 31 billion euros and between 1998 and 2012, Nokia was the world's largest mobile phone manufacturer.[40] Nokia's logistics and economies of scale advantaged the company.[43]
In April 2008, Nokia Productions started a mobile movie-making project. The movie which was presented at the Nokia Theater Los Angeles on 14 October 2008 was directed by Spike Lee. It was approximately 15 minutes long and comprised short segments made on phones contributed by the public. The theme of the movie was "humanity".[45][46]
In 2009, Nokia reentered the personal computing market. Its product, the Nokia Booklet 3G was a Windows-based netbook.[34] The company also entered the smartphone market.[47][48][49] The Series 40 was a phone platform used in feature phones, mainly running Java-based applications.[50][failed verification]
Nokia acquired Smarterphone, a company making the Smarterphone OS for "low end" phones and merged it with Series 40 to form the Asha Platform, which also used some user interface characteristics from Nokia's MeeGo platform.[citation needed] The Asha 501 used this new operating system.[51] The Series 40 was discontinued in late 2014.
Nokia's first Linux devices were the Nokia Internet tablets and the Nokia N900, which ran the Debian-based Maemo.[53] The Maemo project merged with Intel's Moblin to create MeeGo.[54] The Nokia N9 was released before MeeGo was abandoned in favour of Windows Phone.[55] The final products using Linux were the Nokia X series which had an Android operating system.[56]
In April 2003, difficulties in Nokia's division of network equipment led to restructuring and layoffs.[58] Nokia's public image in Finland was diminished.[59][60] litigation was brought against Nokia and a critical documentary television program was broadcast.[61]
In March 2007, Nokia signed an agreement with Cluj County Council, Romania to open a plant near the city in Jucu commune.[64][65] Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.[66][67]
In February 2012, Nokia announced that 4,000 employees would be dismissed. This was to allow its manufacturing centres to move from Europe and Mexico to Asia.[70] In March 2012, Nokia dismissed 1,000 employees at its Salo, Finland factory.[71] In June 2012, research facilities in Ulm, Germany and Burnaby, Canada closed. By the end of 2013, 10,000 employees had been dismissed.[72] In January 2013, Nokia dismissed 1,000 employees from its internet technology, production and logistics divisions.[73]
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