Nokia History – The Rise, Dominance And Epic Fall

Nokia
  • Post author:
  • Reading time:13 mins read

Nokia is one of Finland’s most well-known and widely acknowledged companies. It was once one of the biggest cell phone manufacturers and is a global telecommunications firm. Nokia was never a market leader but it could not compete with its rivals and technologies.

Beginning Of The Giant

Although Nokia could only remind us of mobile telephones, for the most part. The real business began as a paper mill, established in 1865 on the Tammerkoski Rapids in Southwest Finland, by mining engineer Fredrik Ides tam.

But Nokia still wasn’t born. Nokia team was inspired to name his business Nokia Ab. Something that happened in 1871 at the site of his second mill, on the coasts of the Nokianvirta River. The company also went into energy generation after around 3 decades.

In the meanwhile, in 1898 Eduard Polón built Finnish cable capabilities and Arvid Wickström in 1912. In 1918, Nokia was acquired by Finnish Rubber Works for reasonable access

Finnish cable works were also purchased by a newly founded conglomerate in 1922 to the latter’s hydropower reserves.

While the three companies had joint ownership, until 1967, when they combined and the Nokia Corporation was created. They continued to function independently. The newly established business focused primarily on four markets: print, electronics, rubber, and cable. It created products such as toilet paper, bicycle and car tires, rubber boots, televisions, cables for communication, robots, computers, and military equipment, among other things.

Expansion In The Nokia’s Portfolio

  • In 1979, Nokia entered the leading Scandinavian colored TV Company Salora in forming Mobira Oy, a radio company. A few years later, Nokia placed the first international cellular infrastructure to connect Sweden, Denmark, Norway, and Finland, recognized as the Nordic Mobile Network. The first car-phone known as Mobira Senator, which weighed about 10 kg, was later incorporated.
  • Nokia acquired Salora and changed its name to Nokia-Mobira Oy in 1984. In 1984, these are changed. MobiraTalkman, one of the first portable phones announced, also began this year. This states that it can be used in and outside both places but still it weighed around 5kg.
  • After President Mikhail Gorbachov used the phone to make a call from Helsinki to Moscow at a press conference in October 1987, the phone was iconic and it was called “The Gorba.’
  • The following year saw a severe loss in value as a result of strong price competition in electronic consumer markets. The company’s chairman Kari Kairamo reportedly committed suicide due to stress.
  • The new leadership has brought about major changes, splitting the business into six distinct places: telecommunications, consumer electronics, cables and machines, data, mobile telephones, and fundamental industries. Nokia-Mobira Oy was made a cell phone of Nokia in 1989.

Focus Shifted To The Mobile Phones

In the 1990s, Nokia’s leadership decided to focus only on the telecommunications market, resulting in the selling, in the first few years of the decade, of company data, electricity, television, pneumatic, and cable units.

And when the Nokia name emerges it reminds the users or general public about the soothing tone of Nokia mobile phones and the slogan of connecting people.

  • The then Finnish Prime Minister HarriHolkeri gave the world’s first GSM call in 1991. It was made with no surprise equipment from Nokia. The company launched its first GSM Nokia 1011 handheld telephone in the next year.
  • The apparatus reportedly had 90 minutes of talk and 99 contact numbers could be kept. The mobile city man was also identified as 2000.
  • A few years later, the company began its 2100 phone series, which also featured the popular Nokia tuna ringtone as the first. Although Nokia expected to sell 400,000 units, the series was a success sold worldwide with around 20 million phones.
  • Nokia 9000 was introduced in 1996. The all-inclusive handset, bearing an $800 price tag and providing word processing and tablet capabilities allows users to send e-mails, fax, and browse the Site. Things were not commercially popular though the phone managed to establish a special follow-up.
  • In the same year, Nokia 8110 was also launched by the company. The computer featured in the popular science-fiction action movie The Matrix in 1999, was renamed “banana phone”

Leading Position In The World

  • The phenomenal success of the 6100 Nokia Series – which sold almost 41 million mobile phones in 1998 – enabled the company to exceed Motorola, which in the same year was the world’s leading mobile manufacturer. It can be said that the Nokia 6110 was the first phone to be pre-installed with the classic Snake game.
  • Net sales of Nokia grew over 50% year on year, operating income rose by almost 75% and stock prices increased by a whopping 220%, resulting in a surcharge in market capitalization from close to 21 billion dollars to about 70 billion dollars. In 1998, Nokia 8810, the first phone and does not have an external antenna, was also released. The flagship was one of the first chrome slider shell phones in Nokia.
  • The following year, Nokia 3210 was launched. It was a strong handset in six various hues, with an amazing 4-5 hour talk time.
  • The device allows users to also send pre-installed picture messages (like Happy Birthday) via SMS in addition to providing extra sound tones and games. Roughly 160 million handsets were sold and became one of the world’s most popular and profitable phones.

The New Era Of The 2000s

  • Although Nokia was the global market leader in mobile telecommunications technology, the new decade brought with it a new set of challenges. Wireless and internet technology converged and wireless technologies were emerging in the 3rd century – which offered improved multimedia capabilities.
  • In response to the changes, both advanced multimedia devices and low-end devices were produced by the Finnish company. In 2001 it was the first phone to be fitted with the integrated camera and the company introduced the Nokia 7650. The first one to display a full color was also the one.
  • Followed by the introduction in 2002 of the first 3G handset, the Nokia 6650, both on the world stage and in general. In the same year, Nokia 3650, the first Symbian Series 60 computer on the United States market, was released. It was also the first Nokia phone to have a video recording device.
  • In 2003, the company started the Nokia 1100, a budget-friendly telephone, with about 250 million units sold and the world’s highest sales telephone and consumer electronics device. It was also the billionth telephone selling the business later in 2005.
  • In 2003 the unorthodox N-Gage device of the business was introduced. Symbian OS 6.1 (Series 60) was not commercially popular, as only three million units had been sold and operating the hand-held gaming system.
  • The Nokia 7280 telephone was initiated the following year. The smartphone was listed as the best product of the year by Fortune Magazine as part of the company’s “Fashion Phone” line. It was also shown in the “Beep” music video of Pussycat Dolls.
  • The N-series of phones, with the first N70, N90, and N91 members of the series, were launched in the middle of the decade. Later in 2010, the N8 flagship was unveiled.

Nokia first launched a Touch-Smartphone in 2008 with the introduction of its first iPhone in 2007, and the popularity of touch-screen phones is growing. The computer is the first to run the 5800 Xpress Audio Symbian v9.4 (S60 5th Edition). It was able to sell approximately 8 million units, which is decently fine, but could not deliver die-hard as its touch experience was insignificant.

Mistakes Done By Nokia In Early Years

1. Only Hardware Emphasis

The creation of a physical unit, like a cell telephone, is an accomplishment. It wasn’t going to stick, though, without good tech.

As Android and Apple became conscious, they already had the first-mover edge in software focused on applications (iOS and Android), which is now usual in the phone industry.

Symbian was the name of Nokia’s operating system. Although iOS and Android used applications, Symbian was focused on smartphones. They were going in the wrong direction. By 2009, Nokia’s operating system used 57 separate and incompatible versions—a full nightmare for the business.

2) Reluctant To Change

When Google entered the market in 2008, several rivals sailed to Android. They included Samsung, Motorola, and Huawei, who would soon be bestsellers. Nokia was hesitant to move operating systems when rivals had an increased market share.

Finally, Nokia made the transition in 2011. Unless for Android, they didn’t adjust. They cooperated to introduce Windows Phone as the primary operating system in Nokia with Microsoft.

It was a tragedy for the company and in 2013 Nokia essentially lost its status as a leader. To contextualize this error, Android dominates the OS industry now with more than 80% of the smartphone system, and as it started to change into android the train was already missed for Nokia to compete.

3) Missing Out Smartphone Rally

In the mid-2000s Nokia sat comfortably on the mobile phone as Smartphones started to appear. They have been developed, common and beneficial.

They struggled to get the first-mover advantage for smartphones with their performance. Nokia may have taken a lead over rivals in this sector due to their capital. They concentrated instead on making mobile phones durable, cheap, and conventional, exactly the opposite of what most consumers wanted.

Smartphones were catapulted by the sleek iPhone and easily got over Nokia’s podium

Early Signals Of Failures And The Epic Drawdown

It was in 2001 that the revenues of Nokia first shrank after it became the world’s largest telephone manufacturer. The key explanation is that mobile telephone markets have slowed down. This fall proved short-lived, but three years later, in 2004, the company announced once again that its market share was falling, although it still showed a solid 35%.

The company had to recall a massive 46 million defective batteries in 2007. Another hiccup was the one. Worse yet, the batteries produced between the end of 2005 and the end of 2006 appear on a wider range of Nokia telephones which affected much of the product portfolio of the company.

  • Nokia’s Q3 income dropped 30 percent in 2008 – the same day that Android 1.0 was released – while revenue dropped 3.1%. On the other hand, during the same time, iPhone sales grew by about 330%.
  • In 2009, Nokia hired 1,700 people around the world. Later in the year, the difficult Finnish business realizes that it is slow to respond to the evolving market that is now being taken up slowly by newcomers such as Samsung, HTC, and LG including Apple and BlackBerry.
  • Stephen Elop, formerly head of the Business Software Division of Microsoft, was named Nokia’s new CEO the following year. He also became the company’s first non-Finnish boss. Although the company’s income rose in 2010, there have been more job losses.
  • Elop became well-known for a speech he gave to Nokia’s workers at the beginning of the year, where he compared the status of the company to a human on a “burning platform.”

Nokia has announced a strategic alliance with Microsoft, which aims to make this Windows Phone its main mobile OS, urgently to break out of the current crisis and compete better with its rivals.

There have been reports since the announcement that Microsoft is seeking to buy the battling Finnish giant. But then Elop rubbed her off as “base-free.” Meanwhile, in smartphone sales in Q2, 2011, Apple overtook Nokia.

Lumia And Windows

  • The Lumia 800 and Lumia 710 smartphones, announced later in 2011, were the first results of the partnership between Nokia and Microsoft. While the former (in this section), the latter, was aimed at the highest end of the market.
  • While the company managed to sell more than one million devices in just a few months to overcome consumer expectations, jobs have continued to decrease. The company also declared in an attempt to save further expenditures that it would close its oldest production site in Finland and move manufacturing to Asia, which by then had become its largest market – all this occurred at the beginning of 2012.
  • The switch to Windows Phone was then revealed before actual hardware was available – a move which Elop hoped would fuel developer interest, and which usually destroyed Symbian sales 7 months before Nokia could offer an alternative. In addition to the great delay of jumping on a tactile display, two errors of this magnitude have cost the business the dominant position in the fast-moving industry.

Revenue Drawdown And Laying Off

  • Despite respectable revenue, the company suffered a major operating loss of €1.3 billion on its latest Windows Phone devices for Nokia in the first quarter of 2012. Followed by another round of job cuts, this time affecting nearly 10,000 workers.
  • The company released Lumia 920, an 8-powered flagship with Windows Handset, which received mixed feedback, mainly because of its size and bulkiness, later that year. The smartphone became Amazon’s best-selling smartphone in November 2012 and overrun the Expanses chart in the UK during the same time, but the company’s blockbuster sales to return to profit never quite achieved.
  • Finally, in 2013, Nokia came back to benefit six quarters of bleeding cash. The company’s inability to make a dent in the mobile phone market nevertheless resulted in a substantial decline in sales.
  • Nokia was about to fail by 2013 already. On 3 September 2013, it sold the Microsoft hardware department at $7.2 billion. This contract was sealed eight months later and the age of Nokia was but a history.
  • And if the business is attempting to rejuvenate, we must see if it is going to be complete. In China, a brand that is widely regarded, Nokia plans to start. But the stuff is not the way it used to be.
  • Cheaper smartphones flood the market. Even Samsung and Apple world leaders have to struggle to make their voices heard. We still have to see if Nokia can do this. Also, it included Finnish patents and mapping services which saw CEO Stephen Elop return to Microsoft, even if it excluded the Nokia Chennai factory in India or the Masan facility in South Korea. The sale ended in April 2014 officially.

Conclusion

The Finnish company was possibly the key reason why the mobile giant was reluctant to embrace radical change when most was needed. When the company made so many mistakes, it took much too much time to embrace the revolution on the mobile.

Second, Nokia sought to compete with the legacy Symbian by simply incorporating a touch – a fix that could not at the time offer a seamless user experience for its rivals.

“Nothing seems to be permanent anyway, as they say, and everything that goes up must filter down. But it doesn’t take away the fact that Nokia remains an important component that’s never likely to be forgotten in mobile history of the Nokia History.”

Recently Nokia has started a new project of “4G cellular network on moon” which is an interesting project by Nokia. Also, one of the wonderful invention of Nokia is its “portable mobile phone Mobira Cityman 900“.

Share this article:

Leave a Reply

This Post Has 2 Comments

  1. Delores

    It’s very trouble-free to find out any topic on web as compared to books,
    as I found this piece of writing at this web site.

    1. Shikha

      Hi Delores,

      Thanks for your comment.
      I am happy I could help.
      Kindly let us know if you want to read about something specific. I Will try to cover full story on it.
      You can also subscribe us for latest articles.

      Thanks
      Shikha