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NOKIA EVOLUTION

Results Q2/2010

Nokia Osavuosikatsaus 22.7.2010

www.nokia.com/results/Nokia_results2010Q1f.pdf

www.nokia.com/results/Nokia_results2010Q2f.pdf

www.nokia.com/results/Nokia_results2009Q4f.pdf

http://nds2.ir.nokia.com/aboutnokia/downloads/archive/pdf/fin/osvsuo.pdf

Olli-Pekka Kallasvuo

New CEO for Nokia?

Financial report

Order intake

Revenues

Operating profit

Cash flow

Toisen neljänneksen liikevaihto

PRESS RELEASE

Kvartaali

Kauppalehti

Nokia - Q2 2010

http://www.nokia.com/about-nokia/financials/quarterly-and-annual-information/q2-2010

Nokian toisen neljänneksen tulos on odotusten mukainen | Nelonen.fi

Nokian tulos laski - Kallasvuo silti toiveikas | Talous | Iltalehti.fi

Nokian tulos ylitti odotukset selvästi - HS.fi - Talous

Nokia Siemens teki selvästi paremman tuloksen / Bisnes / Digitoday

Miksi Nokian tuloksen pitäisi kiinnostaa? - MTV3.fi - Uutiset - Talous

Nokian tulos pettymys sijoittajille | Talous ja politiikka | YLE

Tulos julki - Nokian osake romahtaa pörssissä - Arvopaperi

Nokian tulos romahti - Kallasvuo jatkaa — Uusi Suomi

Quarterly and annual information

Nokia Q2 2010 net sales EUR 10.0 billion, non-IFRS EPS EUR 0.11 (reported EPS EUR 0.06)

Nokia operating cash flow of EUR 944 million

Non-IFRS second quarter 2010 results1,2
EUR million Q2/2010 Q2/2009 YoY Change Q1/2010 QoQ Change
Net sales 10 005 9 913 1% 9 522 5%
Devices &
  Services
6 800 6 586 3% 6 663 2%
NAVTEQ 253 148 71% 189 34%
Nokia Siemens
  Networks
3 039 3 199 -5% 2 718 12%
Operating profit 660 775 -15% 820 -20%
Devices &
  Services
647 802 -19% 804 -20%
NAVTEQ 50 19 163% 41 22%
Nokia Siemens
  Networks
51 2   15  
Operating margin 6.6% 7.8%   8.6%  
Devices &
  Services
9.5% 12.2%   12.1%  
NAVTEQ 19.8% 12.8%   21.7%  
Nokia Siemens
  Networks
1.7% 0.1%   0.6%  
EPS, EUR Diluted 0.11 0.15 -27% 0.14 -21%
Reported second quarter 2010 results2
EUR million Q2/2010 Q2/2009 YoY Change Q1/2010 QoQ Change
Net sales 10 003 9 912 1% 9 522 5%
Devices &
  Services
6 799 6 586 3% 6 663 2%
NAVTEQ 252 147 71% 189 33%
Nokia Siemens
  Networks
3 039 3 199 -5% 2 718 12%
Operating profit 295 427 -31% 488 -40%
Devices &
  Services
643 763 -16% 831 -23%
NAVTEQ -81 -100   -77  
Nokia Siemens
  Networks
-179 -188   -226  
Operating margin 2.9% 4.3%   5.1%  
Devices &
  Services
9.5% 11.6%%   12.5%  
NAVTEQ -32.1% -68.0%   -40.7%  
Nokia Siemens
  Networks
-5.9% -5.9%   -8.3%  
EPS, EUR Diluted 0.06 0.10 -40% 0.09 -33%
1Non-IFRS results exclude special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from i) the formation of Nokia Siemens Networks and ii) all business acquisitions completed after June 30, 2008. More specific information about the exclusions from the non-IFRS results may be found in this press release on pages 2-3, 14-16 and 18.

Nokia believes that these non-IFRS financial measures provide meaningful supplemental information to both management and investors regarding Nokia’s performance by excluding the above-described items that may not be indicative of Nokia’s business operating results. These non-IFRS financial measures should not be viewed in isolation or as substitutes to the equivalent IFRS measure(s), but should be used in conjunction with the most directly comparable IFRS measure(s) in the reported results. A reconciliation of the non-IFRS results to our reported results for Q2 2010 and Q2 2009 can be found in the tables on pages 11-12 and 14-18 of this press release. A reconciliation of our Q1 2010 non-IFRS results can be found on pages 10 and 12-16 of our Q1 2010 Interim Report of April 22, 2010.

2Nokia reported net sales were EUR 19 525 million and earnings per share (diluted) were EUR 0.16 for the period from January 1 to June 30, 2010. Further information about the results for the period from January 1 to June 30, 2010 can be found in this press release on pages 9-10, 12, 19-21 and 22.

SECOND QUARTER 2010 HIGHLIGHTS

  • Nokia net sales of EUR 10.0 billion, up 1% year-on-year and 5% sequentially (down 4% and up 2% at constant currency).
  • Devices & Services net sales of EUR 6.8 billion, up 3% year-on-year and 2% sequentially (down 2% and 1% at constant currency).
  • Services net sales of EUR 158 million, up 7% sequentially; billings of EUR 295 million, up 29% sequentially.
  • Nokia total mobile device volumes of 111.1 million units, up 8% year-on-year and 3% sequentially.
  • Nokia converged mobile device (smartphone and mobile computer) volumes of 24.0 million units, up 42% year-on-year and 12% sequentially.
  • Nokia mobile device ASP (including services revenue) of EUR 61, down from EUR 62 in Q1 2010.
  • Devices & Services gross margin of 30.2%, down from 34.0% in Q2 2009 and 32.4% in Q1 2010.
  • Devices & Services non-IFRS operating margin of 9.5%, down from 12.2% in Q2 2009 and 12.1% in Q1 2010.
  • NAVTEQ non-IFRS net sales of EUR 253 million, up 71% year-on-year and 34% sequentially (up 69% and 30% at constant currency).
  • Nokia Siemens Networks net sales of EUR 3.0 billion, down 5% year-on-year and up 12% sequentially (down 11% and up 10% at constant currency).
  • Nokia Siemens Networks non-IFRS operating margin of 1.7%, up from 0.1% in Q2 2009 and 0.6% in Q1 2010.
  • Nokia operating cash flow of EUR 944 million.
  • Total cash and other liquid assets of EUR 9.5 billion at the end of Q2 2010.
  • Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately half a Euro cent higher.

OLLI-PEKKA KALLASVUO, NOKIA CEO:

"Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future. For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our Mobile Phones business, helped by an improving line-up of affordable models.

In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian^3 devices, will have a user experience superior to that of any smartphone Nokia has created. The Nokia N8 will be followed soon thereafter by further Symbian^3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia’s fightback at the higher end of the market."

INDUSTRY AND NOKIA OUTLOOK

  • Nokia expects Devices & Services net sales to be between EUR 6.7 billion and EUR 7.2 billion in the third quarter 2010.
  • Nokia expects its non-IFRS operating margin in Devices & Services to be between 7% to 10% in the third quarter 2010.
  • Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 2.7 billion and EUR 3.1 billion in the third quarter 2010.
  • Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be between -2% and 2% in the third quarter 2010.
  • Nokia continues to expect industry mobile device volumes to be up approximately 10% in 2010, compared to 2009 (based on its revised definition of the industry mobile device market applicable beginning in 2010).
  • Nokia continues to target its mobile device volume market share to be flat in 2010, compared to 2009.
  • Nokia continues to expect its mobile device value market share to be slightly lower in 2010, compared to 2009.
  • Nokia continues to target non-IFRS operating expenses in Devices & Services of approximately EUR 5.7 billion in 2010.
  • Nokia targets Devices & Services non-IFRS operating margin of 10% to 11% in 2010. This provides quantification in line with the June 16, 2010, revised target for Devices & Services non-IFRS operating margin for 2010 to be at the lower end of, or below, the previous target of 11% to 13%. Nokia continues to expect Devices & Services non-IFRS operating margin during the fourth quarter 2010 to be higher than the currently targeted full year Devices & Services non-IFRS operating margin.
  • Nokia and Nokia Siemens Networks continue to expect a flat market in Euro terms for the mobile and fixed infrastructure and related services market in 2010, compared to 2009.
  • Nokia and Nokia Siemens Networks now target Nokia Siemens Networks to maintain its market share in 2010. This is an update to Nokia and Nokia Siemens Networks earlier target for Nokia Siemens Networks to grow faster than the market in 2010.
  • Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to reduce its non-IFRS annualized operating expenses and production overheads by EUR 500 million by the end of 2011, compared to the end of 2009.
  • Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks non-IFRS operating margin of breakeven to 2% in 2010.

SECOND QUARTER 2010 FINANCIAL HIGHLIGHTS

(Comparisons are given to the second quarter 2009 results, unless otherwise indicated.)

The non-IFRS results exclusions
 

Q2 2010 — EUR 365 million consisting of:

  • EUR 114 million restructuring charge and other associated items in Nokia Siemens Networks
  • EUR 116 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks
  • EUR 131 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ
  • EUR 4 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications, Novarra and MetaCarta in Devices & Services

Q1 2010 — EUR 332 million (net) consisting of:

  • EUR 125 million restructuring charge and other associated items in Nokia Siemens Networks.
  • EUR 29 million gain on sale of assets and a business in Devices & Services.
  • EUR 116 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks.
  • EUR 118 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ.
  • EUR 2 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications in Devices & Services.

Q2 2009 — EUR 348 million (net) consisting of:

  • EUR 22 million of impairment of intangible assets in Devices & Services
  • EUR 83 million restructuring charge in Devices & Services
  • EUR 68 million gain on sale of security appliance business in Devices & Services
  • EUR 69 million restructuring charge and other associated items in Nokia Siemens Networks
  • EUR 121 million of intangible assets amortization and other purchase price related items arising from the formation of Nokia Siemens Networks
  • EUR 119 million of intangible assets amortization and other purchase price related items arising from the acquisition of NAVTEQ
  • EUR 2 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications in Devices & Services.

Non-IFRS results exclude special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from i) the formation of Nokia Siemens Networks and ii) all business acquisitions completed after June 30, 2008.

Nokia Group

Nokia's second quarter 2010 net sales increased 1% to EUR 10.0 billion, compared with EUR 9.9 billion in the second quarter 2009. At constant currency, group net sales would have decreased 4% year-on-year.

The following chart sets out the year-on-year and sequential growth rates in our net sales on a reported basis and at constant currency for the periods indicated.


 

SECOND QUARTER 2010 NET SALES,
REPORTED & CONSTANT CURRENCY
1
  YoY Change QoQ Change
Group net sales - reported 1% 5%
Group net sales - constant currency 1 -4% 2%
Devices & Services net sales - reported 3% 2%
Devices & Services net sales - constant currency 1 -2% -1%
NAVTEQ net sales – reported 71% 33%
NAVTEQ net sales - constant currency 1 69% 30%
Nokia Siemens Networks net sales - reported -5% 12%
Nokia Siemens Networks net sales - constant currency 1 -11% 10%
1Change in net sales at constant currency excludes the impact of changes in exchange rates in comparison to the Euro, our reporting currency.

Nokia’s second quarter 2010 reported operating profit decreased to EUR 295 million, compared with EUR 427 million in the second quarter 2009. Nokia’s second quarter 2010 non-IFRS operating profit decreased 15% to EUR 660 million, compared with EUR 775 million in the second quarter 2009. Nokia’s second quarter 2010 reported operating margin was 2.9% (4.3%). Nokia’s second quarter 2010 non-IFRS operating margin was 6.6% (7.8%).

Operating cash flow for the second quarter 2010 was EUR 944 million. The operating cash flow for the second quarter 2009 was EUR 716 million. Total cash and other liquid assets were EUR 9.5 billion at end of the second quarter 2010, compared with EUR 7.0 billion at the end of the second quarter 2009. At the end of the second quarter 2010, Nokia’s net debt-equity ratio (gearing) was –27%, compared with -10% at the end of the second quarter 2009.

Devices & Services

As previously disclosed and discussed below, multiple factors negatively impacted Nokia's Devices & Services business during the second quarter 2010, and we expect this to continue during the third quarter 2010.

Net Sales: Second quarter 2010 Devices & Services net sales increased 3% to EUR 6.8 billion, compared with EUR 6.6 billion in the second quarter 2009. At constant currency, Devices & Services net sales would have decreased 2% year-on-year. The net sales increase resulted primarily from higher volumes in most regions driven by stronger demand, partially offset by an ASP decline, compared to the second quarter 2009. Net sales in the second quarter 2010 were adversely impacted by the competitive environment, particularly in the high end of the market.

The following chart sets out Devices & Services net sales for the periods indicated, as well as the year-on-year and sequential growth rates, by geographic area.

DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA
(EUR million) Q2/2010 Q2/2009 YoY
Change
Q1/2010 QoQ
Change
Europe 2 173 2 158 1% 2 186 -1%
Middle East & Africa 934 1 038 -10% 1 005 -7%
Greater China 1 373 1 136 21% 1 458 -6%
Asia-Pacific 1 543 1 568 -2% 1 363 13%
North America 223 264 -16% 219 2%
Latin America 553 422 31% 432 28%
Total 6 799 6 586 3% 6 663 2%

Of our total Devices & Services net sales, services contributed EUR 158 million in the second quarter 2010, compared with EUR 148 million in the first quarter 2010. Services billings in the second quarter 2010 were EUR 295 million, compared with EUR 228 million in the first quarter 2010. Due to the divestment of the security appliance business in April 2009, services net sales of EUR 140 million and billings of EUR 207 million in the second quarter 2009 are not directly comparable to services net sales and billings in the second quarter 2010.

The following chart sets out our Devices & Services net sales for the periods indicated, as well as the year-on-year and sequential growth rates, by category.

DEVICES & SERVICES NET SALES BY CATEGORY
(EUR million) Q2/2010 Q2/2009 3 YoY
Change
3
Q1/2010 QoQ
Change
Mobile phones 1 3 369 3 514 -4% 3 325 1%
Converged mobile devices 2 3 429 3 064 12% 3 338 3%
Total 6 799 6 586 3% 6 663 2%
1Series 30 and Series 40-based devices ranging from basic mobile phones focused on voice capability to devices with a number of additional functionalities, such as Internet connectivity, including the services and accessories sold with them.

2Smartphones and mobile computers, including the services and accessories sold with them.

3Does not include the net sales of the security appliance business that was divested in April 2009.

Volume and Market Share: In the second quarter 2010, the total mobile device volumes of Devices & Services were 111.1 million units, representing an increase of 8% year-on-year and 3% sequentially. The overall industry mobile device volumes for the same period were 338 million units based on Nokia’s preliminary estimate, representing an increase of 14% year-on-year and 5% sequentially. Nokia’s preliminary estimated mobile device market share was 33% in the second quarter 2010, down from an estimated 35% in the second quarter 2009 and unchanged from an estimated 33% in the first quarter 2010 (based on Nokia’s revised definition of the industry mobile device market share applicable beginning in 2010 and applied retrospectively to 2009 for comparative purposes only).

Of the total industry mobile device volumes, converged mobile device industry volumes in the second quarter 2010 increased to 59.0 million units, based on Nokia’s preliminary estimate, compared with an estimated 41.0 million units in the second quarter 2009 and 52.6 million units in the first quarter 2010. Our own converged mobile device volumes, comprising our smartphones and mobile computers, were 24.0 million units in the second quarter 2010, an increase of 42% compared with 16.9 million units in the second quarter 2009 and 12% compared with 21.5 million units in the first quarter 2010. Nokia’s preliminary estimated share of the converged mobile device market was 41% in the second quarter 2010, compared with an estimated 41% in the second quarter 2009 and an estimated 41% in the first quarter 2010.

The following chart sets out our mobile device volumes for the periods indicated, as well as the year–on-year and sequential growth rates, by geographic area.

DEVICES & SERVICES MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA
(million units) Q2/2010 Q2/2009 YoY
Change
Q1/2010 QoQ
Change
Europe 26.1 23.3 12% 23.9 9%
Middle East & Africa 21.0 18.9 11% 22.2 -5%
Greater China 19.3 18.6 4% 21.1 -9%
Asia-Pacific 30.8 30.3 2% 29.2 5%
North America 2.6 3.2 -19% 2.7 -4%
Latin America 11.2 8.9 26% 8.7 29%
Total 111.1 103.2 8% 107.8 3%

Nokia’s 8% year-on-year increase in global mobile device volumes was primarily driven by an improved demand environment as economic conditions had improved in most regions compared with the difficult economic conditions of the second quarter 2009. This improvement was offset to some extent by lower demand for our mobile devices in North America. On a sequential basis, Nokia’s 3% increase in global mobile device volumes primarily reflected a seasonal increase in demand in Latin America, Europe and Asia-Pacific offset to some extent by a seasonal decrease in demand in Greater China and by lower demand for our mobile devices in Middle East & Africa and North America.

Average Selling Price. Our mobile device average selling price (ASP) in the second quarter 2010 was EUR 61, down from EUR 64 in the second quarter 2009 and from EUR 62 in the first quarter 2010 (including services revenue applied retrospectively to 2009 for comparative purposes only). The lower year-on-year ASP was primarily due to a higher proportion of lower-priced converged mobile device sales and price pressure, particularly in certain high-end smartphones, offset to some extent by converged mobile devices representing a greater proportion of our overall mobile device volumes in the second quarter 2010. On a sequential basis, our lower ASP was primarily driven by price pressure, particularly in certain high-end smartphones, offset to some extent by the appreciation of certain currencies against the Euro and converged mobile devices representing a greater proportion of our overall mobile device volumes in the second quarter 2010. Our converged mobile device ASP in the second quarter 2010 was EUR 143, down from EUR 155 in the first quarter 2010 and EUR 181 in the second quarter 2009. The year-on-year and sequential declines in our converged mobile devices ASPs were mainly driven by an increase in the proportion of such devices sold at lower price points consistent with our strategy to reach wider groups of consumers, as well as price pressure in certain high-end smartphones in the second quarter 2010.

The following chart sets out our Devices & Services ASP for the periods indicated, as well as the year-on-year and sequential growth rates, by category.

DEVICES & SERVICES AVERAGE SELLING PRICE BY CATEGORY
(EUR) Q2/2010 Q2/2009 YoY
Change
Q1/2010 QoQ
Change
Mobile phones 1 39 41 -5% 39 0%
Converged mobile devices 2 143 181 -21% 155 -8%
Total 61 64 -4% 62 -1%
1Series 30 and Series 40-based devices ranging from basic mobile phones focused on voice capability to devices with a number of additional functionalities, such as Internet connectivity, including the services and accessories sold with them.

2Smartphones and mobile computers, including the services and accessories sold with them.

Profitability: Devices & Services gross profit (reported and non-IFRS) decreased 8% to EUR 2.1 billion, compared with EUR 2.2 billion in the second quarter 2009, with a gross margin (reported and non-IFRS) of 30.2% (34.0%). Devices & Services gross margin (reported and non-IFRS) was 32.4% in the first quarter 2010. The year-on-year and sequential gross margin declines were primarily due to price pressure, particularly in certain high-end smartphones, offset to some extent by converged mobile devices representing a greater proportion of our overall mobile device volumes in the second quarter 2010, compared to the second quarter 2009 and first quarter 2010. Sequentially, the gross margin decline was also due to the depreciation of the Euro against certain currencies, which led to higher cost of goods sold, and our foreign exchange hedging having a smaller positive one-quarter impact on the gross margin, as well as a mix shift towards sales of lower-gross margin converged mobile devices. During the latter part of the second quarter 2010, Devices & Services net sales and cost of goods sold were somewhat negatively impacted by industry-wide shortages of certain components and we see this situation continuing through the third quarter 2010.

Devices & Services reported operating profit decreased 16% to EUR 643 million, compared with EUR 763 million in the second quarter 2009, with a reported operating margin of 9.5% (11.6%). Devices & Services non-IFRS operating profit decreased 19% to EUR 647 million, compared with EUR 802 million in the second quarter 2009, with a non-IFRS operating margin of 9.5% (12.2%). The 19% year-on-year decrease in non-IFRS operating profit for the second quarter 2010 was driven primarily by the lower gross margin. Our operating expenses in the second quarter 2010 were also adversely impacted by the depreciation of the Euro against certain currencies, compared to the second quarter 2009.

Nokia will deliver a family of smartphones based on the Symbian^3 software platform that is targeted to offer a clearly improved user experience, a high standard of quality, and competitive value to consumers. We plan to start shipping the Nokia N8, the first Symbian^3 device, towards the end of the third quarter 2010. The Nokia N8 will be followed soon thereafter by further Symbian^3 smartphones that will give the platform broader appeal and reach.

NAVTEQ

Net Sales. Second quarter 2010 NAVTEQ reported net sales increased 71% year-on-year to EUR 252 million, compared with EUR 147 million in the second quarter 2009, benefiting from improved conditions in the automotive industry and growth in mobile device sales. At constant currency, NAVTEQ net sales would have increased 69% year-on-year.

Profitability. In the second quarter 2010, NAVTEQ’s reported gross profit increased to EUR 205 million, compared with EUR 125 million in the second quarter 2009, with a gross margin of 81.3% (85.7%). Non-IFRS gross profit was EUR 206 million (EUR 127 million), with a non-IFRS gross margin of 81.4% (85.8%). In the second quarter 2010, NAVTEQ’s reported operating loss decreased to EUR 81 million, compared with a EUR 100 million loss in the second quarter 2009. The reported operating margin was -32.1% (-68.0%). NAVTEQ’s non-IFRS operating profit was EUR 50 million (EUR 19 million), with a non-IFRS operating margin of 19.8% (12.8%) in the second quarter 2010.

Nokia Siemens Networks

Net Sales. Second quarter 2010 net sales decreased 5% to EUR 3.0 billion, compared with EUR 3.2 billion in the second quarter 2009. The decrease was primarily due to the ongoing industry-wide issue related to security clearances in India, which is preventing the completion of product sales to customers, and shortages of certain components that are affecting the broader industry; we see both of these situations continuing during the third quarter 2010. At constant currency, Nokia Siemens Networks net sales would have decreased 11% year-on-year. Of total Nokia Siemens Networks net sales, services contributed EUR 1.4 billion in the second quarter 2010.

The following chart sets out Nokia Siemens Networks net sales for the periods indicated, as well as the year-on-year and sequential growth rates, by geographic area.

NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA
(EUR million) Q2/2010 Q2/2009 YoY
Change
Q1/2010 QoQ
Change
Europe 1 136 1 209 -6% 1 065 7%
Middle East & Africa 400 459 -13% 297 35%
Greater China 357 353 1% 275 30%
Asia-Pacific 594 648 -8% 632 -6%
North America 181 208 -13% 153 18%
Latin America 371 322 15% 296 25%
Total 3 039 3 199 -5% 2 718 12%

Profitability. Nokia Siemens Networks reported gross profit increased 1% to EUR 869 million, compared with EUR 860 million in the second quarter 2009, with a gross margin of 28.6% (26.9%). Nokia Siemens Networks non-IFRS gross profit increased 4% to EUR 937 million, compared with EUR 897 million in the second quarter 2009, with a non-IFRS gross margin of 30.8% (28.0%). The higher year-on-year non-IFRS gross profit in the second quarter 2010 was primarily due to continued progress on product cost reductions and a favorable regional mix, compared to the second quarter 2009.

Nokia Siemens Networks second quarter 2010 reported operating loss was EUR 179 million, compared with a reported operating loss of EUR 188 million in the second quarter 2009, with a reported operating margin of -5.9% (-5.9%). Nokia Siemens Networks non-IFRS operating profit was EUR 51 million in the second quarter 2010, compared with a non-IFRS operating profit of EUR 2 million in the second quarter 2009, with a non-IFRS operating margin of 1.7% (0.1%). The year-on-year improvement in Nokia Siemens Networks non-IFRS operating result was primarily due to the improved gross margin.

Q2 2010 OPERATING HIGHLIGHTS

Devices & Services

  • Nokia continued to build the various elements of, and attract consumers to, Ovi. Highlights for the quarter included the following:
  • To support the expansion of Ovi, Nokia acquired MetaCarta Inc. to obtain its geographic intelligence technology and expertise, and Novarra Inc., whose mobile browser and services platform will be used by Nokia to deliver enhanced Internet experiences on Nokia’s Series 40-based mobile phones.
  • Nokia continued to expand elements of Ovi into different markets. For example, Nokia brought its unlimited music downloads offering to China and India, as well as expanded the footprint of Ovi Life Tools, its data and entertainment service, to China.
  • Ovi continued to gain further traction with consumers. For example, cumulative downloads of Ovi Maps, the free navigation offering, reached more than 17 million by the end of the quarter. Nokia also began including the offering in all its GPS-enabled smartphones out-of-the-box.
  • Nokia took a significant step to building greater presence for Ovi on the web, announcing a worldwide strategic alliance with Yahoo! that will see the two companies leverage each others' strengths in e-mail, instant messaging and maps and navigation services. As part of the alliance, Nokia will be the exclusive, global provider of Yahoo!'s maps and navigation services, integrating Ovi Maps across Yahoo! properties, branded as “powered by Ovi”, while Yahoo! will become the exclusive, global provider of Nokia's Ovi Mail and Ovi Chat services branded as “Ovi Mail / Ovi Chat powered by Yahoo!”.
  • Nokia and Microsoft launched Microsoft Communicator Mobile, the first application developed together as part of their alliance around mobile productivity. The application is available to owners of selected Nokia Eseries devices through Ovi Store.
  • Nokia continued to grow and enhance the usability of Ovi Store for consumers and publishers. The release of Ovi Store 1.7 during the second quarter delivers improvements to browsing and search consumer experience. Nokia’s most popular devices each have access to more than 13 000 content items (including apps) in the store. Ovi App Wizard achieved 1 million downloads in just 10 weeks since launch with thousands of partners publishing thousands of apps. The store has been attracting on average more than 1.7 million downloads a day. Additionally, 90% of Nokia consumers who can access Ovi Store can now do so in their local language (where Ovi Store supports at least one of the country’s primary languages), while more than 80% of those with local language availability can also purchase from Ovi Store in their local currency.
  • Nokia launched the Nokia N8, the first Nokia smartphone based on the next-generation Symbian^3 software that is targeted to offer a clearly improved user experience, a higher standard of quality, and competitive value to consumers. The Nokia N8 also offers industry-leading imaging, video and entertainment capabilities.
  • Nokia launched a trio of Nokia C1 phones, one of which features a 2-in-1 double SIM solution. Nokia also launched the Nokia C2, a dual SIM device with dual standby capability.
  • Nokia launched the Nokia Bicycle Charger Kit, an alternative charging solution built especially for people with limited access to electricity.
  • Nokia started shipments of the Nokia C3, a mobile phone featuring a full QWERTY keyboard and optimized for messaging and social networking.
  • Nokia launched the Nokia C6, a messaging-optimized smartphone with a 3.2-inch HD touchscreen display, a slide out four-row QWERTY keyboard and a 5 megapixel camera.
  • Nokia launched the Nokia E5, a messaged-optimized smartphone that builds on the success of the Nokia E71 and Nokia E72.
  • Nokia strengthened its portfolio of devices based on China’s TD-SCDMA standard with the launch of the Nokia X5 and the Nokia C5.
  • Nokia launched the Nokia X2, featuring dual speakers, dedicated music keys, an FM stereo radio and support for up to 16GB of storage via a microSD card.
  • Nokia started shipments of the Nokia E73 Mode, a QWERTY smartphone exclusively for T-Mobile customers in the United States.

NAVTEQ

  • NAVTEQ announced the following:
  • The launch of full, navigable map coverage of Bulgaria and Egypt, as well as a completely updated addressing system in the Kingdom of Saudi Arabia.
  • The launch of NAVTEQ Traffic Patterns, NAVTEQ Lonely Planet Trips and NAVTEQ LocationPoint Advertising in Australia.
  • An expanded visual content offering for its Singapore map, including 3D Landmarks, Enhanced 3D City Models, Junction View image and Sign-As-real images.
  • Successful advertiser trials in Europe with McDonald’s and Best Western powered by NAVTEQ’s LocationPoint Advertising platform.
  • Garmin’s selection of NAVTEQ Traffic for its first European connected PND service.
  • An expanded agreement with the United States National Geospatial Intelligence Agency under the Homeland Security Infrastructure Program for utilization of NAVTEQ map data.
  • The addition of the Lonely Planet Travel Guide™ to the NAVTEQ map of India.

Nokia Siemens Networks

  • Nokia Siemens Networks smart device solutions, which allow improved battery life, better coverage and faster download speeds, were deployed in London to improve user experience on the O2 network. Similar contracts were agreed with many operators including Elisa in Finland, Mosaic Telecom in the United States, SFR in France, Indosat in Indonesia, Cable & Wireless Communications in the UK, Cell C in South Africa and Qatar Telecom in Qatar.
  • Nokia Siemens Networks signed a full operation and maintenance managed services contract with Mobile TeleSystems in Russia, a seven-year service management and equipment supply agreement with Vodafone Hutchison in Australia and a large services contract with Telefónica O2 to expand network capacity across Germany.
  • In April, Nokia Siemens Networks signed a EUR 750 million frame agreement with China Mobile and China Unicom to continue providing GSM, WCDMA and TD-SCDMA mobile network equipment and solutions.
  • Nokia Siemens Networks complemented its portfolio with TD-LTE support using its common software definable Flexi Multiradio Base Station including trials in China and Taiwan, interoperability tests with Samsung devices as well as launch of the TD-LTE Open Lab in China.
  • Nokia Siemens Networks continued to prepare for commercial LTE deployments with technological world-first trials, including a 75 kilometer LTE call with Telstra in Australia, the launch of Self Organizing Networks offering for LTE to reduce human error and cost, and started production of LTE-ready Flexi Multiradio Base Station radio frequency modules for 800 MHz spectrum suitable for rural areas.
  • Nokia Siemens Networks achieved industry firsts with the unveiling of a migration path to 400-Gigabit-per-second optical transport and a next generation packet optical transport solution to help operators cut their costs. During the quarter Nokia Siemens Networks also delivered a major optical transport network upgrade to Aurora, Australia.
  • T-Mobile UK and 3 UK awarded Nokia Siemens Networks a GBP 400 million contract to build Europe’s largest shared network (MBNL) and will offer smartphone and dongle customers the biggest 3G coverage in the United Kingdom. The HSDPA 3G network already offers outdoor coverage to more than 90% of Britain’s population.
  • Vodafone Portugal selected Nokia Siemens Networks Service Broker, which is based on an OpenCloud platform and will enable the seamless convergence of legacy services with new data services, to satisfy growing subscriber demand for personalized services.

For more information on the operating highlights mentioned above, please refer to related press announcements at the following links:

http://www.nokia.com/press, http://www.navteq.com/about/press.html, http://www.nokiasiemensnetworks.com/press.

NOKIA IN THE SECOND QUARTER 2010

(The following discussion is of Nokia's reported results. Comparisons are given to the second quarter 2009 results, unless otherwise indicated.)

Nokia’s net sales increased 1% to EUR 10 003 million (EUR 9 912 million). Net sales of Devices & Services increased 3% to EUR 6 799 million (EUR 6 586 million). Net sales of NAVTEQ increased 71% to EUR 252 million (EUR 147 million). Net sales of Nokia Siemens Networks decreased 5% to EUR 3 039 million (EUR 3 199 million).

Operating profit decreased 31% to EUR 295 million (EUR 427 million), representing an operating margin of 2.9% (4.3%). Operating profit in Devices & Services decreased 16% to EUR 643 million (EUR 763 million), representing an operating margin of 9.5% (11.6%). Operating loss in NAVTEQ was EUR 81 million (operating loss EUR 100 million), representing an operating margin of -32.1% (-68.0%). Operating loss in Nokia Siemens Networks was EUR 179 million (operating loss EUR 188 million), representing an operating margin of -5.9% (-5.9%). Group Common Functions reported expense totaled EUR 33 million (EUR 48 million).

In the period from April to June 2010, net financial expense was EUR 68 million (EUR 61 million). Profit before tax was EUR 221 million (EUR 380 million). Profit was EUR 104 million (EUR 287 million), based on a profit of EUR 227 million (EUR 380 million) attributable to equity holders of the parent and a loss of EUR 123 million (loss of EUR 93 million) attributable to non-controlling interests. Earnings per share decreased to EUR 0.06 (basic) and to EUR 0.06 (diluted), compared with EUR 0.10 (basic) and EUR 0.10 (diluted) in the second quarter of 2009.

NOKIA IN JANUARY – JUNE 2010

(The following discussion is of Nokia's reported results. Comparisons are given to the January-June 2009 results, unless otherwise indicated.)

Nokia’s net sales increased 2% to EUR 19 525 million (EUR 19 186 million). Net sales of Devices & Services increased 6% to EUR 13 462 million (EUR 12 759 million). Net sales of NAVTEQ were EUR 441 million (EUR 279 million). Net sales of Nokia Siemens Networks decreased 7% to EUR 5 757 million (EUR 6 189 million).

Operating profit increased 62% to EUR 783 million (EUR 482 million), representing an operating margin of 4.0% (2.5%). Operating profit in Devices & Services increased 13% to EUR 1 474 million (EUR 1 310 million), representing an operating margin of 10.9% (10.3%). Operating loss in NAVTEQ was EUR 158 million (loss of EUR 220 million), representing an operating margin of -35.8% (-78.9%). Operating loss in Nokia Siemens Networks was EUR 405 million (loss of EUR 549 million), representing an operating margin of -7.0% (-8.9%). Corporate Common Functions reported expense totaled EUR 53 million (EUR 59 million).

In the period from January to June 2010, net financial expense was EUR 141 million (net financial expense EUR 138 million). Profit before tax was EUR 632 million (EUR 368 million). Profit was EUR 279 million (EUR 291 million), based on a profit of EUR 576 million (EUR 502 million) attributable to equity holders of the parent and a loss of EUR 297 million (loss EUR 211 million) attributable to non-controlling interests. Earnings per share increased to EUR 0.16 (basic) and EUR 0.16 (diluted), compared with EUR 0.14 (basic) and EUR 0.13 (diluted) in January-June 2009.

PERSONNEL

The average number of employees during the period from January to June 2010 was 126 876, of which the average number of employees at Nokia Siemens Networks was 64 759. At June 30, 2010, Nokia employed a total of 129 746 people (120 827 people at June 30, 2009), of which 65 251 were employed by Nokia Siemens Networks (60 983 people at June 30, 2009).

SHARES

The total number of Nokia shares at June 30, 2010 was 3 744 956 052. At June 30, 2010, Nokia and its subsidiary companies owned 36 112 670 Nokia shares, representing approximately 1.0 % of the total number of Nokia shares and the total voting rights.

FORWARD-LOOKING STATEMENTS

It should be noted that certain statements herein which are not historical facts are forward-looking statements, including, without limitation, those regarding: A) the timing of the deliveries of our products and services and their combinations; B) our ability to develop, implement and commercialize new technologies, products and services and their combinations; C) expectations regarding market developments and structural changes; D) expectations and targets regarding our industry volumes, market share, prices, net sales and margins of products and services and their combinations; E) expectations and targets regarding our operational priorities and results of operations; F) the outcome of pending and threatened litigation; G) expectations regarding the successful completion of acquisitions or restructurings on a timely basis and our ability to achieve the financial and operational targets set in connection with any such acquisition or restructuring; and H) statements preceded by "believe," "expect," "anticipate," "foresee," "target," "estimate," "designed," "plans," "will" or similar expressions. These statements are based on management's best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the competitiveness and quality of our portfolio of products and services and their combinations; 2) our ability to timely and successfully develop or otherwise acquire the appropriate technologies and commercialize them as new advanced products and services and their combinations, including our ability to attract application developers and content providers to develop applications and provide content for use in our devices; 3) our ability to effectively, timely and profitably adapt our business and operations to the requirements of the converged mobile device market and the services market; 4) the intensity of competition in the various markets where we do business and our ability to maintain or improve our market position or respond successfully to changes in the competitive environment; 5) the occurrence of any actual or even alleged defects or other quality, safety or security issues in our products and services and their combinations; 6) the development of the mobile and fixed communications industry and general economic conditions globally and regionally; 7) our ability to successfully manage costs; 8) exchange rate fluctuations, including, in particular, fluctuations between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 9) the success, financial condition and performance of our suppliers, collaboration partners and customers; 10) our ability to source sufficient amounts of fully functional components, sub-assemblies, software, applications and content without interruption and at acceptable prices and quality; 11) our success in collaboration arrangements with third parties relating to the development of new technologies, products and services, including applications and content; 12) our ability to manage efficiently our manufacturing and logistics, as well as to ensure the quality, safety, security and timely delivery of our products and services and their combinations; 13) our ability to manage our inventory and timely adapt our supply to meet changing demands for our products; 14) our ability to protect the complex technologies, which we or others develop or that we license, from claims that we have infringed third parties' intellectual property rights, as well as our unrestricted use on commercially acceptable terms of certain technologies in our products and services and their combinations; 15) our ability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented, standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 16) the impact of changes in government policies, trade policies, laws or regulations and economic or political turmoil in countries where our assets are located and we do business; 17) any disruption to information technology systems and networks that our operations rely on; 18) our ability to retain, motivate, develop and recruit appropriately skilled employees; 19) unfavorable outcome of litigations; 20) allegations of possible health risks from electromagnetic fields generated by base stations and mobile devices and lawsuits related to them, regardless of merit; 21) our ability to achieve targeted costs reductions and increase profitability in Nokia Siemens Networks and to effectively and timely execute related restructuring measures; 22) developments under large, multi-year contracts or in relation to major customers in the networks infrastructure and related services business; 23) the management of our customer financing exposure, particularly in the networks infrastructure and related services business; 24) whether ongoing or any additional governmental investigations into alleged violations of law by some former employees of Siemens AG ("Siemens") may involve and affect the carrier-related assets and employees transferred by Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens Networks customer relationships resulting from ongoing or any additional governmental investigations involving the Siemens carrier-related operations transferred to Nokia Siemens Networks; as well as the risk factors specified on pages 11-32 of Nokia's annual report Form 20-F for the year ended December 31, 2009 under Item 3D. "Risk Factors." Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

Nokia, Helsinki – July 22, 2010

Media and Investor Contacts:

Corporate Communications, tel. +358 7180 34900
Investor Relations Europe, tel. +358 7180 34927
Investor Relations US, tel. +1 914 368 0555

 

  • Nokia plans to publish its third quarter 2010 results on October 21, 2010.



www.nokia.com

 

Nokia Siemens Network - Motorola

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LOGO

Evolution of Nokia

Rubber Tiers

All Nokia models in a historical timeline


FINLAND - SUOMI

WIKIPEDIA

Type Public – Oyj
(OMX: NOK1V, NYSE: NOK, FWB: NOA3)
Founded Tampere, Finland (1865)
incorporated in Nokia (1871)
Founder(s) Fredrik Idestam
Headquarters Espoo, Finland
Area served Worldwide
Key people Jorma Ollila (Chairman)
Olli-Pekka Kallasvuo (President & CEO)
Timo Ihamuotila (CFO)
Mary T. McDowell (CDO)
Industry Telecommunications
Internet
Computer software
Products Mobile phones
Smartphones
Mobile computers
Networks
(See products listing)
Services Services and Software
Online services
Revenue ▼ €40.99 billion (2009)[1]
Operating income ▼ €1.197 billion (2009)[1]
Net income ▼ €891 million (2009)[1]
Total assets ▼ €35.74 billion (2009)[1]
Total equity ▼ €14.75 billion (2009)[1]
Employees 123,171 (2009)[1]
Divisions Devices
Services
Solutions
Markets
Subsidiaries Nokia Siemens Networks
Navteq
Symbian
Vertu
Qt Development Frameworks
Website Nokia.com

History

Fredrik Idestam, founder of Nokia. Statesman Leo Mechelin, co-founder of Nokia.

The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the workplace of more than 1,000 Nokia employees.[23] Pre-telecommunications era
The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag), Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd (Suomen Kaapelitehdas Oy).[24]

Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper.[25] In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production.[26] In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today.[26]

The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable.[27] After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day.[28]

Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirement from the management of the company in 1896 allowed Mechelin to become the company's chairman (from 1898 until 1914) and sell most shareholders on his plans, thus realizing his vision.[26] In 1902, Nokia added electricity generation to its business activities.[25]

 Industrial conglomerate
In 1898, Eduard Polón founded Finnish Rubber Works, manufacturer of galoshes and other rubber products, which later became Nokia's rubber business.[24] At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and began using Nokia as its product brand.[29] In 1912, Arvid Wickström founded Finnish Cable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses.[24] At the end of the 1910s, shortly after World War I, the Nokia Company was nearing bankruptcy.[30] To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the business of the insolvent company.[30] In 1922, Finnish Rubber Works acquired Finnish Cable Works.[31] In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Gold medalist, became President of Finnish Cable Works, after 16 years as its Technical Director.[32] After World War II, Finnish Cable Works supplied cables to the Soviet Union as part of Finland's war reparations. This gave the company a good foothold for later trade.[32]

The three companies, which had been jointly owned since 1922, were merged to form a new industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia's future as a global corporation.[33] The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including Wellington boots), communications cables, televisions and other consumer electronics, personal computers, electricity generation machinery, robotics, capacitors, military communications and equipment (such as the SANLA M/90 device and the M61 gas mask for the Finnish Army), plastics, aluminium and chemicals.[23] Each business unit had its own director who reported to the first Nokia Corporation President, Björn Westerlund. As the president of the Finnish Cable Works, he had been responsible for setting up the company’s first electronics department in 1960, sowing the seeds of Nokia’s future in telecommunications.[34]

Eventually, the company decided to leave consumer electronics behind in the 1990s and focused solely on the fastest growing segments in telecommunications.[35] Nokian Tyres, manufacturer of tyres split from Nokia Corporation to form its own company in 1988[36] and two years later Nokian Footwear, manufacturer of rubber boots, was founded.[29] During the rest of the 1990s, Nokia divested itself of all of its non-telecommunications businesses.[35]

 Telecommunications era
The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in 1960 and the production of its first electronic device in 1962: a pulse analyzer designed for use in nuclear power plants.[34] In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment.

 Networking equipment
In the 1970s, Nokia became more involved in the telecommunications industry by developing the Nokia DX 200, a digital switch for telephone exchanges. In 1982, a DX 200 switch became the world's first microprocessor controlled telephone exchange and the first fully digital exchange to be taken into service in Europe. The DX 200 became the workhorse of the network equipment division. Its modular and flexible architecture enabled it to be developed into various switching products.[37] In 1984, development of a version of the exchange for the Nordic Mobile Telephony network was started.[38]

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"), a digital, portable and encrypted text-based communications device for the Finnish Defence Forces.[39] The current main unit used by the Defence Forces is the Sanomalaite M/90 (SANLA M/90).[40]

 First mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared to the Nokia 1100 from 2003.[41] The Mobira Cityman line was launched in 1987.[42]The technologies that preceded modern cellular mobile telephony systems were the various "0G" pre-cellular mobile radio telephony standards. Nokia had been producing commercial and some military mobile radio communications technology since the 1960s, although this part of the company was sold some time before the later company rationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora Oy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephony system and the first commercially operated public mobile phone network in Finland. It went online in 1971 and offered 100% coverage in 1978.[43]

In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy. Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony) network standard, the first-generation, first fully-automatic cellular phone system that went online in 1981.[44] In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.[44]

Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed the company's telecommunications 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 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam). 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).[42] 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.[23]

Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba".[42]

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 (since renamed to GeoSentric).[45] One year later, Nokia-Mobira Oy became Nokia Mobile Phones.

 Involvement in GSM
Nokia was one of the key developers of GSM (Global System for Mobile Communications),[46] the second-generation mobile technology which could carry data as well as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephony standard that enabled international roaming, provided valuable experience for Nokia for its close participation in developing GSM, which was adopted in 1987 as the new European standard for digital mobile technology.[47][48]

Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989.[49] The world's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM phone.[49] In 1992, the first GSM phone, the Nokia 1011, was launched.[49][50] The model number refers to its launch date, 10 November.[50] The Nokia 1011 did not yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as a ringtone in 1994 with the Nokia 2100 series.[51]

GSM's high-quality voice calls, easy international roaming and support for new services like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone use.[49] GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008 accounting for about three billion mobile telephone subscribers in the world, with more than 700 mobile operators across 218 countries and territories. New connections are added at the rate of 15 per second, or 1.3 million per day.[52]

 Personal computers and IT equipment
See also: MikroMikko and Nokia Booklet 3G

The Nokia Booklet 3G mini laptop.In the 1980s, Nokia's computer division Nokia Data produced a series of personal computers called MikroMikko.[53] MikroMikko was Nokia Data's attempt to enter the business computer market. The first model in the line, MikroMikko 1, was released on September 29, 1981,[54] around the same time as the first IBM PC. However, the personal computer division was sold to the British ICL (International Computers Limited) in 1991, which later became part of Fujitsu.[55] MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the MikroMikko line was marketed by Fujitsu as the ErgoPro.

Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers, which shut down its only factory in Espoo, Finland (in the Kilo district, where computers had been produced since the 1960s) at the end of March 2000,[56][57] thus ending large-scale PC manufacturing in the country. Nokia was also known for producing very high quality CRT and early TFT LCD displays for PC and larger systems application. The Nokia Display Products' branded business was sold to ViewSonic in 2000.[58] In addition to personal computers and displays, Nokia used to manufacture DSL modems and digital set-top boxes.

Nokia re-entered the PC market in August 2009 with the introduction of the Nokia Booklet 3G mini laptop.[59]

 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 and businesses that were just too diverse.[60] These problems, and a suspected total burnout, probably contributed to Kairamo taking his own life in 1988. After Kairamo's death, Simo Vuorilehto became Nokia's Chairman and CEO. In 1990–1993, Finland underwent severe economic depression,[61] which also struck Nokia. Under Vuorilehto's management, Nokia was severely overhauled. The company responded by streamlining its telecommunications divisions, and by divesting itself of the television and PC divisions.[62]

Probably the most important strategic change in Nokia's history was made in 1992, however, when the new CEO Jorma Ollila made a crucial strategic decision to concentrate solely on telecommunications.[35] Thus, during the rest of the 1990s, the rubber, cable and consumer electronics divisions were gradually sold as Nokia continued to divest itself of all of its non-telecommunications businesses.[35]

As late as 1991, more than a quarter of Nokia's turnover still came from sales in Finland. However, after the strategic change of 1992, Nokia saw a huge increase in sales to North America, South America and Asia.[63] The exploding worldwide popularity of mobile telephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis in the mid-1990s.[64] This prompted Nokia to overhaul its entire logistics operation.[65] By 1998, Nokia’s focus on telecommunications and its early investment in GSM technologies had made the company the world's largest mobile phone manufacturer.[63] Between 1996 and 2001, Nokia’s turnover increased almost fivefold from 6.5 billion euros to 31 billion euros.[63] Logistics continues to be one of Nokia's major advantages over its rivals, along with greater economies of scale.[66][67]

 Recent history
This section has multiple issues. Please help improve the article or discuss these issues on the talk page.
It may be slanted towards recent events. Please edit this page to keep recent events in historical perspective. Tagged since May 2008.
It may contain an inappropriate mixture of prose and timeline. Tagged since March 2008.


 Milestones and releases

Reduction in size of Nokia mobile phones.
Evolution of the Nokia Communicator. Models 9000, 9110, 9210 and 9500 shown.Nokia opened its Komárom, Hungary mobile phone factory on May 5, 2000.[68]

In March 2007, Nokia signed a memorandum with Cluj County Council, Romania to open a new plant near the city in Jucu commune.[11][69][70] Moving the production from the Bochum, Germany factory to a low wage country created an uproar in Germany.[71][72]

In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003,[41] with over 200 million units shipped, was the best-selling mobile phone of all time and the world's top-selling consumer electronics product.[73]

In November 2007, Nokia announced and released the Nokia N82, its first (and currently, only) Nseries phone with Xenon flash.

At the Nokia World conference in December 2007, Nokia announced their "Comes With Music" program: Nokia device buyers are to receive a year of complimentary access to music downloads.[74] The service became commercially available in the second half of 2008.

In April 2008, Nokia began finding new ways to connect people, asking the "audience" to use their creativity and their mobile devices to become Nokia’s production company – to take part in filming, acting, editing and producing a collaborative film. Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee. This was a collaborative experience that existed across borders and perspectives, working off a common script. The film premiered in October 2008.[75]

In 2008, Nokia released the Nokia E71 which was marketed to directly compete with the other BlackBerry devices offering a full keyboard and cheaper prices.

Nokia announced in August 2009 that they will be selling a high-end Windows-based mini laptop called the Nokia Booklet 3G.[59]

On September 2, 2009, Nokia launched two new music and social networking phones, the X6 and X3.[76] The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch interface and comes with a music playback time of 35 hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is a music device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixel camera.

On September 10, 2009, Nokia unveiled a new handset 7705 Twist, a phone with a sports square shape that swivels open to reveal a full QWERTY keypad.[77] The new mobile, which will be available exclusively through Verizon Wireless, features a 3 megapixel camera, web browsing, voice commands and weighs around 3.44 ounces.

 Reorganizations
In April 2003, the troubles of the networks equipment division caused the corporation to resort to similar streamlining practices on that side, including layoffs and organizational restructuring.[78] This diminished Nokia's public image in Finland,[79][80] and produced a number of court cases and an episode of a documentary television show critical of Nokia.[81]

On February 2006, Nokia and Sanyo announced a memorandum of understanding to create a joint venture addressing the CDMA handset business. But in June, they announced ending negotiations without agreement. Nokia also stated its decision to pull out of CDMA research and development, to continue CDMA business in selected markets.[82][83][84]

In June 2006, Jorma Ollila left his position as CEO to become the chairman of Royal Dutch Shell[85] and to give way for Olli-Pekka Kallasvuo.[86][87]

In May 2008, Nokia announced on their annual stockholder meeting that they want to shift to the Internet business as a whole. Nokia no longer wants to be seen as the telephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with.[88]

In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan.[89] Following early December, distribution of Nokia E71 is cancelled, both from NTT docomo and SoftBank Mobile. Nokia Japan retains global research & development programs, sourcing business, and an MVNO venture of Vertu luxury phones, using docomo's telecommunications network.

 Acquisitions
For a more comprehensive list, see List of acquisitions by Nokia

The Nokia E55, a mobile phone in the business segment and part of the Nokia Eseries range.On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became the major basis to develop the Nokia N-Gage device.[90]

On November 16, 2005, Nokia and Intellisync Corporation, a provider of data and PIM synchronization software, signed a definitive agreement for Nokia to acquire Intellisync.[91] Nokia completed the acquisition on February 10, 2006.[92]

On June 19, 2006, Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, Nokia Siemens Networks.[93] Each company has a 50% stake in the infrastructure company, and it is headquartered in Espoo, Finland. The companies predicted annual sales of €16 bn and cost savings of €1.5 bn a year by 2010. About 20,000 Nokia employees were transferred to this new company.

On August 8, 2006, Nokia and Loudeye Corp. announced that they had signed an agreement for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60 million.[94] The company has been developing this into an online music service in the hope of using it to generate handset sales. The service, launched on August 29, 2007, is aimed to rival iTunes. Nokia completed the acquisition on October 16, 2006.[95]

In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharing solution for organizing and sharing photos, videos and other personal media.[96][97]

In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile advertising technology and services.[98]

In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, a U.S.-based supplier of digital mapping data, for a price of $8.1 billion.[4][99] Nokia finalized the acquisition on July 10, 2008.[100]

In September, 2008, Nokia acquired OZ Communications, a privately held company with approximately 220 employees headquartered in Montreal, Canada.[101]

On July 24, 2009, Nokia announced that it will acquire certain assets of cellity, a privately owned mobile software company which employs 14 people in Hamburg, Germany.[102] The acquisition of cellity was completed on August 5, 2009.[103]

On September 11, 2009, Nokia announced the acquisition of "certain assets of Plum Ventures, Inc, a privately held company which employed approximately 10 people with main offices in Boston, Massachusetts. Plum will complement Nokia’s Social Location services".[104]

 Corporate affairs
 Corporate structure
 Divisions
Since October 1, 2009, Nokia comprises three business groups: Devices, Services, Solutions and Markets.[105] The four units receive operational support from the Corporate Development Office, led by Mary T. McDowell, which is also responsible for exploring corporate strategic and future growth opportunities.[105]

On April 1, 2007, Nokia’s Networks business group was combined with Siemens’ carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks, jointly owned by Nokia and Siemens and consolidated by Nokia.[106]

 Devices

The Nokia N900, a Maemo 5 Linux based mobile Internet device and touchscreen smartphone from Nokia's Nseries portfolio.The Devices division is responsible for developing and managing Nokia's mobile device portfolio, including the sourcing of components, headed by Kai Öistämö.[105] The division consists of the previous mainline Mobile Phones division with the separate subdivisions Multimedia (Nseries devices) and Enterprise Solutions (Eseries devices) as well as formerly centralized core devices R&D – called Technology Platforms.

This division provides the general public with mobile voice and data products across a wide range of mobile devices, including high-volume, consumer oriented mobile phones and devices, and more expensive multimedia and enterprise-class devices. The devices are based on GSM/EDGE, 3G/W-CDMA and CDMA cellular technologies. Nokia's Nseries Multimedia Computers extensively uses Symbian OS.

In the first quarter of 2006 Nokia sold over 15 million MP3 capable mobile phones, which means that Nokia is not only the world's leading supplier of mobile phones and digital cameras (as most of Nokia's mobile telephones feature digital cameras, it is also believed that Nokia has recently overtaken Kodak in camera production making it the largest in the world), Nokia is now also the leading supplier of digital audio players (MP3 players), outpacing sales of devices such as the iPod from Apple. At the end of the year 2007, Nokia managed to sell almost 440 million mobile phones which accounted for 40% of all global mobile phones sales.[107]

 Services
The Services division operates in five areas of consumer Internet services: music, maps, media, messaging and games.[105] The division consists of the previous enterprise and consumer driver services businesses previously hosted in Multimedia and Enterprise Solutions divisions, as well as a number of new acquisitions (Loudeye, Gate5, Enpocket, Intellisync, Avvenu and OZ Communications), headed by Niklas Savander.

The group works with companies outside the telecommunications industry to make advances in the technology and bring new applications and possibilities in areas such as online services, optics, music synchronization and streaming media.

 Solutions
Solutions is responsible for Nokia's offering of solutions, where the mobile device, personalized services and content are integrated into a package for the consumer. The unit is led by Alberto Torres.

 Markets
The Markets division, the successor organization to Nokia's Customer and Market Operations division, is responsible for the management of the supply chains, sales channels, brand and marketing functions of the company, headed by Anssi Vanjoki.[105]

 Subsidiaries

The Nokia 5800 XpressMusic, a touchscreen smartphone and portable entertainment device which emphasizes music and multimedia playback.Nokia has several subsidiaries, of which the two most significant as of 2009 are Nokia Siemens Networks and Navteq.[105] Other notable subsidiaries include, but are not limited to Vertu, a British-based manufacturer and retailer of luxury mobile phones; Qt Software, a Norwegian-based software company, and OZ Communications, a consumer e-mail and instant messaging provider.

Until 2008 Nokia was the major shareholder in Symbian Limited, a software development and licensing company that produced Symbian OS, a smartphone operating system used by Nokia and other manufacturers. In 2008 Nokia acquired Symbian Ltd and, along with a number of other companies, created the Symbian Foundation to distribute the Symbian platform royalty free and as open source.

 Nokia Siemens Networks
Main article: Nokia Siemens Networks
Nokia Siemens Networks (previously Nokia Networks) provides wireless and wired network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers.[105] Nokia Siemens Networks focuses in GSM, EDGE, 3G/W-CDMA and WiMAX radio access networks; core networks with increasing IP and multiaccess capabilities; and services.

On June 19, 2006 Nokia and Siemens AG announced the companies are to merge their mobile and fixed-line phone network equipment businesses to create one of the world's largest network firms, called Nokia Siemens Networks.[93] The Nokia Siemens Networks brand identity was subsequently launched at the 3GSM World Congress in Barcelona in February 2007.[108][109]

As of March 2009, Nokia Siemens Networks serves more than 600 operator customers in more than 150 countries, with over 1.5 billion people connected through its networks.[110]

 Navteq
Main article: Navteq
Navteq is a Chicago, Illinois-based provider of digital map data for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.[105] Navteq was acquired by Nokia on October 1, 2007.[4] Navteq’s map data is part of the Nokia Maps online service where users can download maps, use voice-guided navigation and other context-aware web services.[105] Nokia Maps is part of the Ovi brand of Nokia's Internet based online services.

 Corporate governance
The control and management of Nokia is divided among the shareholders at a general meeting and the Group Executive Board (left),[111] under the direction of the Board of Directors (right).[112] The Chairman and the rest of the Group Executive Board members are appointed by the Board of Directors. Only the Chairman of the Group Executive Board can belong to both, the Board of Directors and the Group Executive Board. The Board of Directors' committees consist of the Audit Committee,[113] the Personnel Committee[114] and the Corporate Governance and Nomination Committee.[115][116]

The operations of the company are managed within the framework set by the Finnish Companies Act,[117] Nokia's Articles of Association[118] and Corporate Governance Guidelines,[119] and related Board of Directors adopted charters.

Group Executive Board [111]
Olli-Pekka Kallasvuo (Chairman), b. 1953
President, CEO and Group Executive Board Chairman of Nokia Corporation since June 1, 2006
Member of the Nokia Board of Directors since May 3, 2007
With Nokia 1980–1981, rejoined 1982, Group Executive Board member since 1990

Esko Aho, b. 1954
Executive Vice President, Corporate Relations and Responsibility
Joined Nokia November 1, 2008, Group Executive Board member since 2009.
Former Prime Minister of Finland (1991–1995).
Timo Ihamuotila, b. 1966
Executive Vice President, Chief Financial Officer
With Nokia 1993–1996, rejoined 1999, Group Executive Board member since 2007
Mary T. McDowell, b. 1964
Executive Vice President, Chief Development Officer
Joined Nokia 2004, Group Executive Board member since 2004
Hallstein Mørk, b. 1953
Executive Vice President, Human Resources
Joined Nokia 1999, Group Executive Board member since 2004
Dr. Tero Ojanperä, b. 1966
Executive Vice President, Services
Joined Nokia 1990, Group Executive Board member since 2005
Niklas Savander, b. 1962
Executive Vice President, Services
Joined Nokia 1997, Group Executive Board member since 2006
Richard A. Simonson, b. 1958
Executive Vice President, Mobile Phones, Devices
Joined Nokia 2001, Group Executive Board member since 2004
Alberto Torres, b. 1965
Executive Vice President, Solutions
Joined Nokia 2004, Group Executive Board member since October 1, 2009
Anssi Vanjoki, b. 1956
Executive Vice President, Markets
Joined Nokia 1991, Group Executive Board member since 1998
Dr. Kai Öistämö, b. 1964
Executive Vice President, Devices
Joined Nokia 1991, Group Executive Board member since 2005
Board of Directors [112]
Jorma Ollila (Chairman), b. 1950
Board member since 1995, Chairman of the Board of Directors since 1999
Chairman of the Board of Directors of Royal Dutch Shell PLC
Dame Marjorie Scardino (Vice Chairman), b. 1947
Board member since 2001
Chairman of the Corporate Governance and Nomination Committee, Member of the Personnel Committee
Chief Executive Officer and member of the Board of Directors of Pearson PLC
Georg Ehrnrooth, b. 1940
Board member since 2000
Chairman of the Audit Committee, Member of the Corporate Governance and Nomination Committee
Lalita D. Gupte, b. 1948
Board member since 2007, Member of the Audit Committee
Non-executive Chairman of the ICICI Venture Funds Management Co Ltd.
Dr. Bengt Holmström, b. 1949
Board member since 1999
Paul A. Samuelson Professor of Economics at Massachusetts Institute of Technology,
joint appointment at the MIT Sloan School of Management
Dr. Henning Kagermann, b. 1947
Board member since 2007, Member of the Personnel Committee
CEO and Chairman of the Executive Board of SAP AG
Olli-Pekka Kallasvuo, b. 1953
Board member since 2007
President and CEO of Nokia Corporation
Per Karlsson, b. 1955
Board member since 2002, Independent Corporate Advisor
Chairman of the Personnel Committee, Member of the Corporate Governance and Nomination Committee
Isabel Marey-Semper, b. 1967
Board member since 2009, Member of the Audit Committee
Chief Financial Officer, EVP in charge of strategy of PSA Peugeot Citroën
Risto Siilasmaa, b. 1966
Board member since 2008, Member of the Audit Committee
Founder and Chairman of F-Secure
Keijo Suila, b. 1945
Board member since 2006, Member of the Audit Committee


 Former corporate officers
Chief Executive Officers Chairmen of the Board of Directors [120]
Björn Westerlund 1967–1977 Lauri J. Kivekäs 1967–1977 Simo Vuorilehto 1988–1990
Kari Kairamo 1977–1988 Björn Westerlund 1977–1979 Mika Tiivola 1990–1992
Simo Vuorilehto 1988–1992 Mika Tiivola 1979–1986 Casimir Ehrnrooth 1992–1999
Jorma Ollila 1992–2006 Kari Kairamo 1986–1988 Jorma Ollila 1999–
Olli-Pekka Kallasvuo 2006–

 Logos
Nokia Company logo. Founded in Tampere in 1865, incorporated in Nokia in 1871.[25] The brand logo of Finnish Rubber Works, founded in Helsinki in 1898.[29]
Logo from 1965–1966. The Nokia Corporation "arrows" logo, used before the "Connecting People" logo. Nokia introduced its "Connecting People" advertising slogan, coined by Ove Strandberg.[121]
--------------------------------------------------------------------------------
This earlier version of the slogan used Times Roman SC (Small Caps) font.[122]
Nokia's current logo with the redesigned "Connecting People" slogan.
--------------------------------------------------------------------------------
This slogan uses Nokia's proprietary 'Nokia Sans' font, designed by Erik Spiekermann.[123] Nokia Siemens Networks logo. Founded in 2007. Navteq logo. Founded in 1985, acquired by Nokia in 2007.

 Stock
Nokia, a public limited liability company, is the oldest company listed under the same name on the Helsinki Stock Exchange (since 1915).[23] Nokia’s shares are also listed on the Frankfurt Stock Exchange (since 1988) and New York Stock Exchange (since 1994).[9][23]

 Corporate culture

The Nokia House, Nokia's head office in Keilaniemi, Espoo, Finland.Nokia's official corporate culture manifesto, The Nokia Way, emphasises the speed and flexibility of decision-making in a flat, networked organization, although the corporation's size necessarily imposes a certain amount of bureaucracy.[124]

The official business language of Nokia is English. All documentation is written in English, and is used in official intra-company spoken communication and e-mail.

Until May 2007, the Nokia Values were Customer Satisfaction, Respect, Achievement, and Renewal. In May 2007, Nokia redefined its values after initiating a series of discussions worldwide as to what the new values of the company should be. Based on the employee suggestions, the new values were defined as: Engaging You, Achieving Together, Passion for Innovation and Very Human.[124]

 Online services
 .mobi and the Mobile Web
Nokia was the first proponent of a Top Level Domain (TLD) specifically for the Mobile Web and, as a result, was instrumental in the launch of the .mobi domain name extension in September 2006 as an official backer.[125][126] Since then, Nokia has launched the largest mobile portal, Nokia.mobi, which receives over 100 million visits a month.[127] It followed that with the launch of a mobile Ad Service to cater to the growing demand for mobile advertisement.[128]

 Ovi
Main article: Ovi (Nokia)

Nokia Ovi logo.Ovi, announced on August 29, 2007, is the name for Nokia's "umbrella concept" Internet services.[129] Centered on Ovi.com, it is marketed as a "personal dashboard" where users can share photos with friends, download music, maps and games directly to their phones and access third-party services like Yahoo's Flickr photo site. It has some significance in that Nokia is moving deeper into the world of Internet services, where head-on competition with Microsoft, Google and Apple is inevitable.[130]

The services offered through Ovi include the Ovi Store (Nokia's application store), the Nokia Music Store, Nokia Maps, Ovi Mail, the N-Gage mobile gaming platform available for several S60 smartphones, Ovi Share, Ovi Files, and Contacts and Calendar.[131] The Ovi Store, the Ovi application store was launched in May 2009.[132] Prior to opening the Ovi Store, Nokia integrated its software Download! store, the stripped-down MOSH repository and the widget service WidSets into it.[133]

 My Nokia
Nokia offers a free personalised service to its subscribers called My Nokia (located at my.nokia.com).[134] Registered My Nokia users can avail free services as follows:

Tips & tricks alerts through web, e-mail and also mobile text message.
My Nokia Backup: A free online backup service for mobile contacts, calendar logs and also various other files. This service needs GPRS connection.
Numerous ringtones, wallpapers, screensavers, games and other things can be downloaded free of cost.
 Comes With Music
On December 4, 2007, Nokia unveiled their plans for the "Nokia Comes With Music" initiative, a program that would partner with Universal Music Group International,Sony BMG, Warner Music Group, and EMI as well as hundreds of Independent labels and music aggregators to bundle 12, 18, or 24 months worth of unlimited free music downloads with the purchase of a Nokia Comes With Music edition phone. Following the termination of the year of free downloads, tracks can be kept without having to renew the subscription. Downloads will be both PC and mobile-based.[74]

 Nokia Messaging
On August 13, 2008, Nokia launched a beta release of "Nokia Email service", a new push e-mail service, since graduated as part of Nokia Messaging.[135]

Nokia Messaging operates as a centralised, hosted service that acts as a proxy between the Nokia Messaging client and the user's e-mail server. It does not allow for a direct connection between the phone and the e-mail server, and is therefore required to send e-mail credentials to Nokia's servers.[136] IMAP is used as the protocol to transfer emails between the client and the server.

 Controversy
 NSN's provision of intercept capability to Iran

A cartoon about Nokia's provision of intercept capability to Iran and people who were arrested in Iran by IRI regime using intercept capabilitiesIn 2008, Nokia Siemens Networks, a joint venture between Nokia and Siemens AG, reportedly provided Iran's monopoly telecom company with technology that allowed it to intercept the Internet communications of its citizens to an unprecedented degree.[137] The technology reportedly allowed it to use deep packet inspection to read and even change the content of everything from "e-mails and Internet phone calls to images and messages on social-networking sites such as Facebook and Twitter". The technology "enables authorities to not only block communication but to monitor it to gather information about individuals, as well as alter it for disinformation purposes," expert insiders told The Wall Street Journal. During the post-election protests in Iran in June 2009, Iran's Internet access was reported to have slowed to less than a tenth of its normal speeds, and experts suspected this was due to the use of the interception technology.[138]

The joint venture company, Nokia Siemens Networks, asserted in a press release that it provided Iran only with a 'lawful intercept capability' "solely for monitoring of local voice calls". "Nokia Siemens Networks has not provided any deep packet inspection, web censorship or Internet filtering capability to Iran," it said.[139]

In July 2009, Nokia began to experience a boycott of their products and services in Iran. The boycott was led by consumers sympathetic to the post-election protest movement and targeted at those companies deemed to be collaborating with the Islamic regime. Demand for handsets fell and users began shunning SMS messaging.[140]

 Lex Nokia
In 2009, Nokia heavily supported the passing of a law in Finland that allows companies to monitor their employees’ electronic communications in cases of suspected information leaking.[141] Contrary to rumors, Nokia denied that the company would have considered moving its head office out of Finland if laws on electronic surveillance were not changed.[142] The Finnish media dubbed the name Lex Nokia for this law, named after the Finnish copyright law (the so-called Lex Karpela) a few years back.

 Nokia-Apple patent dispute
On October 2009, Nokia filed a lawsuit against Apple Inc. in the U.S. District Court of Delaware citing Apple infringed on 10 of its patents related to wireless communication including data transfer.[143] Apple was quick to respond with a countersuit filed in December 2009 accusing Nokia of 11 patent infringements. Apple’s General Counsel, Bruce Sewell went a step further by stating, "Other companies must compete with us by inventing their own technologies, not just by stealing ours." This resulted in an ugly spat between the two telecom majors with Nokia filing another suit, this time with the U.S. International Trade Commission (ITC), alleging Apple of infringing its patents in "virtually all of its mobile phones, portable music players, and computers."[144] Nokia went on to ask the court to bar all U.S. imports of the Apple products including the iPhone, Mac and the iPod. Not one to be pushed behind, Apple countersued by filing a complaint with the ITC in January 2010, the details of which are yet to be confirmed.[143]

 Environmental record
Electronic products such as cell phones impact the environment both during production and after their useful life when they are discarded and turned into electronic waste. According to environmental organization Greenpeace, Nokia has a good track record in limiting the amount of toxic chemicals in its products, supporting recycling, and reducing impact on climate change, compared to other market leaders in the electronics industry. In the 14th Greenpeace Guide to Greener Electronics, Nokia stays in first place with a total score of 7.3/10.[145][146]

In version 13 of the Guide, Nokia scored maximum points for its voluntary take-back program, which spans 84 countries with almost 5,000 collection points for end-of-life mobile phones.[147] It also scored top marks for the information it provides on what to do with discarded products.[148] However, the recycling rate of Nokia phones was only 3–5% in 2008, according to a global consumer survey released by Nokia.[149] The majority of old mobile phones are simply lying in drawers at home and very few old devices, about 4%, are being thrown into landfill and not recycled.[149]

Nokia scored very well on toxic chemical issues; it launched new models free of PVC at the end of 2005, first products without components containing BFRs from January 2007, and aims to have all new models free of all brominated and chlorinated compounds and antimony trioxide from the beginning of 2010.[150] Nokia scored maximum points for committing to reduce absolute CO2 emissions by a minimum of 10% in 2009 and 18% in 2010 from a baseline year of 2006.[151] Top marks were given for product energy efficiency as all but one of its mobile phone chargers exceed the EPA’s Energy Star requirements by 30–90%.[152] Since 2001, Nokia has provided eco declarations of all its products.[153]

Nokia is currently actively researching the use of recycled plastics in their products, which are currently used only in packaging.[154] In an effort to further reduce their environmental impact in the future, Nokia released a new phone concept, Remade, in February 2008.[155] The phone has been constructed of solely recyclable materials.[155] The outer part of the phone is made from recycled materials such as aluminum cans, plastic bottles, and used car tires.[156] The screen is constructed of recycled glass, and the hinges have been created from rubber tires. The interior of the phone is entirely constructed with refurbished phone parts, and there is a feature that encourages energy saving habits by reducing the backlight to the ideal level, which then allows the battery to last longer without frequent charges.

 Research cooperation with universities
Nokia is actively exploring and engaging in open innovation through selective research collaborations with major universities and institutions by sharing resources and leveraging ideas. Current collaborations include:[157]

Aalto University School of Science and Technology, Finland
École Polytechnique Fédérale de Lausanne, Switzerland
ETH Zurich, Switzerland
Massachusetts Institute of Technology, United States
Stanford University, United States
Tampere University of Technology, Finland
Tsinghua University, China
University of California, Berkeley, United States
University of Cambridge, United Kingdom
University of Southern California, United States
 See also
Companies portal
Lists
List of Nokia products
List of acquisitions by Nokia
General
Symbian – An open source operating system for mobile devices.
Gnokii − A suite of programs for communicating with mobile phones.
Maemo − Software and development platform and an operating system.
Nokia Beta Labs − Nokia beta applications.
Nokia Ovi Suite – Allows user to sync content with his Nokia device, send and receive text messages, take backup from device, transfer map files into device and update device software
Nokia PC Suite − A software package.
Nokia Software Updater − Mobile device firmware updater.
Forum Nokia − Developer community and support program.
Nokia head office − Nokia's headquarters.
Nokia, Finland − A Finnish town.
Nokian Tyres − A Finnish manufacturer of tires split from Nokia Corporation in 1988.
Nokian Footwear − A Finnish manufacturer of boots split from Nokia Corporation in 1990.

 

Nokia 1000 series 1011 · 1100/1101 · 1110/1110i · 1112 · 1200 · 1208 · 1600 · 1610 · 1650
Nokia 2000 series 2110i · 2115i · 2310 · 2600 · 2600 classic · 2610 · 2630 · 2650 · 2651 · 2700 classic · 2730 classic · 2760
Nokia 3000 series 3100/3100b/3105 · 3110 · 3110 classic · 3120 · 3120 classic · 3155 · 3200/3200b/3205 · 3210 · 3220 · 3230 · 3250 · 3310 · 3315 · 3330 · 3410 · 3500 classic · 3510/3590/3595 · 3510i · 3600/3620/3650/3660 · 3600 slide · 3720 classic
Nokia 5000 series 5070 · 5100 · 5110 · 5130 Xpress Music · 5200 · 5210 · 5220 Xpress Music · 5230/5235 · 5300 · 5310 Xpress Music · 5320 · 5330 Mobile TV Edition · 5500 Sport · 5510 · 5530 · 5610 · 5700 · 5730 · 5800
Nokia 6000 series 6010 · 6020/6021 · 6030 · 6070 · 6085 · 6100 · 6101 · 6103 · 6110/6120 · 6110 Navigator · 6111 · 6120/6121/6124 classic · 6131/6133 · 6136 · 6151 · 6170 · 6210 · 6210 Navigator · 6220 classic · 6230 · 6233 · 6255i · 6260 Slide · 6265 · 6270 · 6275i · 6280/6288 · 6290 · 6300 · 6300i · 6301 · 6303 classic · 6310i · 6315i · 6500 classic · 6500 slide · 6555 · 6600 · 6600 fold · 6600 slide · 6610i · 6620 · 6630 · 6650 · 6650 fold · 6670 · 6680 · 6681/6682 · 6700 classic · 6710 Navigator · 6720 classic · 6730 · 6800 · 6810 · 6820 · 6822
Nokia 7000 series 7110 · 7160 · 7250 · 7280 · 7360 · 7380 · 7390 · 7500 Prism · 7600 · 7610 · 7650 · 7700 · 7710 · 7900 Prism
Nokia 8000 series 8110 · 8210 · 8250 · 8310 · 8600 Luna · 8800 · 8850 · 8910
Nokia Communicator 9000/9110/9110i · 9210/9290 · 9210i · 9300/9300i · 9500
Nokia Cseries C5
Nokia Eseries E50 · E51 · E52 · E55 · E60 · E61/E61i · E62 · E63 · E65 · E66 · E70 · E71 · E72 · E75 · E90 Communicator
Nokia Nseries N70 · N71 · N72 · N73 · N75 · N76 · N78 · N79 · N80 (Internet Edition) · N81 (N81 8GB) · N82 · N85 · N86 8MP · N90 · N91 (N91 8GB) · N92 · N93 · N93i · N95 · N95 8GB · N96 · N97
Nokia Xseries X3 · X6
Internet Tablet 770 · N800 · N810 (WiMAX Edition) · N900
Other N-Gage (Classic · QD · QD Silver Edition) · Vertu luxury phones
Concept Nokia Morph · S60


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^ "Open Innovation – Nokia Research Center". Nokia Corporation. http://research.nokia.com/openinnovation. Retrieved 2009-04-01.
Nokia Corporation (pronounced /ˈnɔkiɑ/) (OMX: NOK1V, NYSE: NOK, FWB: NOA3) is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.[2] Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009.[1] It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in Q4 2009, up from 37% in Q4 2008 and 38% in Q3 2009, and its converged device market share was about 40% in Q4, up from 35% in Q3 2009.[1] Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services.[3] Nokia is also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq.[4]

Nokia has sites for research and development, manufacture and sales in many countries throughout the world. As of December 2009, Nokia had R&D presence in 16 countries and employed 37,020 people in research and development, representing approximately 30% of the group's total workforce.[1] The Nokia Research Center, founded in 1986, is Nokia's industrial research unit consisting of about 500 researchers, engineers and scientists.[5][6] It has sites in seven countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United States.[7] Besides its research centers, in 2001 Nokia founded (and owns) INdT – Nokia Institute of Technology, a R&D institute located in Brazil.[8] Nokia operates a total of 15 manufacturing facilities[9] located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Farnborough, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South Korea.[10][11] Nokia's Design Department remains in Salo, Finland.

Nokia is a public limited liability company listed on the Helsinki, Frankfurt, and New York stock exchanges.[9] 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.[12] It is an important employer in Finland and several small companies have grown into large ones as its partners and subcontractors.[13] Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of the Finnish GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.[14]

In recent years, Finns have consistently ranked Nokia as one of the best Finnish brands. In 2008, it was the 27th most respected brand among Finns, down from sixth place in 2007.[15] The Nokia brand, valued at $34.9 billion, is listed as the fifth most valuable global brand in the Interbrand/BusinessWeek Best Global Brands list of 2009 (first non-US company).[16][17] It is the number one brand in Asia (as of 2007)[18] and Europe (as of 2009),[19] the 42nd most admirable company worldwide in Fortune's World's Most Admired Companies list of 2009 (third in Network Communications, seventh non-US company),[20] and the world's 85th largest company as measured by revenue in Fortune Global 500 list of 2009, up from 88th the previous year.[21] As of 2009, AMR Research ranks Nokia's global supply chain number six in the world.[22]

Drawings from the Finnish Nature and Culture

Maalauksia Suomen luonnosta ja kulttuurista

 

 

 

 

 

 

 

 

 

 

 

 

 

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