Nokia: the history of the business

Nokia was first established as a communications company in Finland in 1987 and, over the course of its existence, specialized primarily in the production of mobile phones, a success due in part to its joint venture with Siemens telecommunications to form ‘Nokia Siemens Networks’.

Nokia’s rise to prominence was not an overnight success. The company had been making commercial mobile radio technology since the 1960s, which included producing the kind of technology that would soon become an integral part of car phone capabilities. Nokia consolidated its power in the communications industry when it became Finland’s first commercial telephone network in 1971. Since then, Nokia has acquired a global workforce of 122,000 employees in 120 countries. Nokia’s products generate an annual revenue of €38 billion and, as of 2012, they are the world’s second largest phone producers.

Nokia’s power increased in Finland after the 1979 merger with the communications company Salora, which led to the creation of Mobira Oy, a joint venture that, in addition to developing car phones, began manufacturing mobile phones to the NMT (Nordic Mobile Telephony) network. Nokia bought Salora for the full rights to Mobira in 1984 and changed the name to Nokia-Mobira Oy.

Nokia’s first success beyond its homeland came in 1984 after the launch of the mobile phone, The Mobira Talkman. This popularity continued with the Mobira Cityman 900 model three years later. The Mobira Cityman was one of the lightest phones in the world weighing just 800 grams and despite costing 24,000 Finnish Marks (approximately £3,653), the phone found many customers in the Western world at a time when the phones were becoming a status symbol. , thanks in large part to the rise of ‘yuppie’ culture, a name given to a new generation of successful young adults in the business world. However, the Mobira Cityman’s appeal also prevailed in unlikely partnerships, perhaps most notably when communist leader Mikhail Gorbachev was photographed using a Mobira to call Russia from Finland in 1987.

Throughout the 1990s, Nokia grew stronger with its technology, staying ahead of all competitors. Between 1998 and 2012, Nokia was the world’s largest phone retailer, and by the end of 2007, had sold more than 440 million units, making them responsible for 40% of all global phone sales. However, in recent years, Nokia’s dominance has diminished due to the growing popularity of smartphones, such as Apple’s iPhone. By 2011, Nokia’s market share in the mobile phone market had dropped to 27%. This was an unexpected blow to the business that has led to the development of new products, such as new phones like the Lumia 710 and 800, which are part of a commercial agreement with Microsoft Windows. Building on Nokia’s previous business successes, this company will not only produce great new technology, but will help re-establish them as the world’s leading mobile phone provider.