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Nokia Corporation (pronunciation /'nɔkiɑ/ ) OMX: NOK1V, NYSE: NOK, FWB: NOA3) is a Finnish multinational communications corporation, headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is focused on wireless and wired telecommunications, with 112,262 employees in 120 countries, sales in more than 150 countries and global annual revenue of 51.1 billion euros and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share was about 38% in Q3 of 2008, down from 39% in Q3 2007 and down from 40% sequentially. Nokia produces mobile phones for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipments, solutions and services.
Nokia has sites for research and development, manufacturing and sales in many continents throughout the world. As of March 2008, Nokia had R&D centers in 10 countries and employed 30,415 people in research and development, representing approximately 27% of Nokia’s total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial research unit of about 800 researchers, engineers and scientists. It has sites in seven countries: Finland, Denmark, Germany, China, Japan, United Kingdom and United States. Besides its NRCs, in 2001 Nokia founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in Brazil. Nokia's production facilities are located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Fleet, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.
Nokia plays a very large role in the economy of Finland: it is by far the largest Finnish company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007; a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as Nokia's subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. In 2006, Nokia generated revenue that for the first time exceeded the state budget of Finland.
Finns have ranked Nokia many times as the best Finnish brand and employer. The Nokia brand, valued at $35.9 billion, is listed as the 5th most valuable global brand in Interbrand/BusinessWeek's Best Global Brands list of 2008 (1st non-US company). It is the number one brand in Asia (as of 2007) and Europe (as of 2008), the 23rd most admirable company worldwide in Fortune's World's Most Admired Companies list of 2008 (tied with Exxon Mobil; 2nd in Network Communications, 5th non-US company), and is the world's 88th largest company in Fortune Global 500 list of 2008, up from 119 of the previous year. As of 2008, AMR Research ranks Nokia's global supply chain number two in the world.
History
Pre-telecommunications era
What is known today as Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of the Tammerkoski rapids in the town of Tampere, in south-western Finland. The company was later relocated to the town of Nokia by the Nokianvirta river, which had better resources for hydropower production. That is where the company got the name that it still uses today. The name Nokia originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the old Finnish word originally meaning a dark, furry animal that was locally known as the nokia, or sable, or later pine marten.
Finnish Rubber Works established its factories in the beginning of 20th century nearby and began using Nokia as its brand. Shwere merged to form Nokia Corporation in 1967.
The new company was involved in many sectors, producing at one time or another paper products, bicycle and car tires, footwear (including Wellington boots), personal computers, communications cables, televisions, electricity generation machinery, capacitors, aluminium, etc.
Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in the 1960s. In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment.
First mobile phones
Nokia had been producing commercial and military mobile radio communications technology since the 1960s. Since 1964 Nokia had developed VHF-radio simultaneously with Salora Oy, which later in 1971 also developed the ARP-phone. In 1979 the merger of these two companies resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the Nordic Mobile Telephony (NMT) network standard that went online in the 1980s and in 1982 it 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 telecommunication 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. 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.
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. One year later, Nokia Mobira Oy became Nokia Mobile Phones and in 1991 the first GSM phone was launched.
Involvement in GSM
Nordic Mobile Telephony was the world's first mobile telephony standard that enabled international roaming, and provided valuable experience for Nokia for its close participation in developing Global System for Mobile Communications (GSM). It is a digital standard which came to dominate the world of mobile telephony in the 1990s, in mid-2006 accounting for about two billion mobile telephone subscribers in the world, or about 80 percent of the total, in more than 200 countries. The world's first commercial GSM call was made in 1991 in Helsinki over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a Nokia phone.
Networking equipment
In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX200, a digital switch for telephone exchanges. In 1982, a DX200 switch became the world's first digital telephone switch to be put into operational use. The DX200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products.
For a while in the 1970s, Nokia's network equipment production was separated into Telefenno , a company jointly owned by the parent corporation and by a company owned by the Finnish state. In 1987 the state sold its shares to Nokia and in 1992 the name was changed to Nokia Telecommunications.
In the 1970s and 1980s Nokia developed the Sanomalaitejärjestelmä ("Message device system") for Finnish Defence Forces.
Personal computers
In the 1980s, Nokia produced a series of personal computers called MikroMikko. However, the PC division was sold to ICL, which later became part of Fujitsu. That company later transferred its personal computer operations to Fujitsu Siemens Computers , which shut down its only factory in Finland (in the town of Espoo, where computers had been produced since the 1960s) at the end of March 2000, thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT displays for PC and larger systems application. The CRT division was sold to Viewsonic in 2000.
Challenges of growth
In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields, mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into serious financial problems, a major reason being its heavy losses by the television manufacturing division (these problems probably contributed to Kairamo taking his own life in 1988). Nokia responded by streamlining its telecommunications divisions, and by divesting itself of the television and PC divisions. Jorma Ollila, who became the CEO in 1992, made a strategic decision to concentrate solely on telecommunications. Thus, during the rest of the 1990s, Nokia continued to divest itself of all of its non-telecommunicat
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