Nokia was founded as Nokia Company in 1865 in a small town of the same name in central Finland.
Nokia was a pioneer in the industry and introduced many new production methods to a country with only one major natural resource, its vast forests.
As the industry became increasingly energy-intensive, the company even constructed its own power plants.
Nokia shares were first listed on the Helsinki exchange in 1915.
During the early 1960s Nokia began to diversify in an attempt to transform the company into a regional conglomerate with interests beyond Finnish borders.
Unable to initiate strong internal growth, Nokia turned its attention to acquisitions.
The government, however, hoping to rationalize two underperforming basic industries, favored Nokia's expansion within the country and encouraged its eventual merger with Finnish Rubber Works, which was founded in 1898, and Finnish Cable Works, which was formed in 1912, to form Nokia Corporation.
Nokia's most important focus was development of the electronics sector.
Over the course of the 1980s, the firm acquired nearly 20 companies, focusing especially on three segments of the electronics industry:
In spite of these efforts, Nokia's pretax profits continued to decline in 1989 and 1990, culminating in a loss of $102 million in 1991.
Industry observers blamed cutthroat European competition, the breakdown of the Finnish banking system, and the collapse of the Soviet Union.
But, notwithstanding these difficulties, Nokia remained committed to its high-tech orientation. Late in 1991, the company strengthened that dedication by promoting JormaOllila from president of Nokia-Mobira Inc. (renamed Nokia Mobile Phones Ltd. the following year) to group president.
Aiding this surge was the November 1997 introduction of the 6100 series of digital phones.
This line proved immensely popular because of the phones' small size,lightweight,and superior battery life. First introduced in the burgeoning mobile phone market in China.
Nokia sold nearly 41 million cellular phones in 1998. Net sales increased more than 50 percent over the previous year, jumping from FIM 52.61 billion ($9.83 billion) to FIM 79.23 billion ($15.69 billion).
Operating profits increased by 75 percent, while the company's skyrocketing stock price shot up more than 220 percent, pushing Nokia's market capitalization from FIM 110.01 billion ($20.57 billion) to FIM 355.53 billion ($70.39 billion).
Conquering the mobile phone market in late 1990’s First
Not content with conquering the mobile phone market, Nokia began aggressively pursuing the mobile Internet sector in the late 1990s.
The Nokia 8110 mobile phone included the capability to access the Internet.
Nokia began acquiring Internet technology companies, starting with the December 1997, $120 million purchase of Ipsilon Networks Inc., a Silicon Valley firm specializing in Internet routing. One year later, Nokia spent FIM 429 million ($85 million) for Vienna Systems Corporation, a Canadian firm focusing on Internet Protocol telephony.
Acquisitions continued in 1999, when a further seven deals were completed, four of which were Internet-related.
Meanwhile, net sales increased a further 48 percent in 1999, while operating profits grew by 57 percent; riding the late 1990s high-tech stock boom, the market capitalization of Nokia took another huge leap, ending the year at EUR 209.37 billion ($211.05 billion).
Nokia's share of the global cellular phone market increased from 22.5 percent in 1998 to 26.9 percent in 1999, as the company sold 76.3 million phones in 1999.
Nokia's ascendance to the top of the wireless world by the end of the 1990s could be traced to the company being able to consistently.
The continuation of this trend into the 21st century was by no means certain as the increasing convergence of wireless.
Internet technologies and the development of the third generation (3G) of wireless technology were predicted to open Nokia up to new and formidable competitors.
Perhaps the greatest threat was that chipmakers such as Intel would turn mobile phones into commodities just as they had previously done with personal computers; the days of the $500 Nokia phone were potentially numbered.
Nevertheless, Nokia's 25 percent profit margins were enabling it to spend a massive $2 billion a year on research and development and continue to churn out innovative new products, concentrating on the various standards being developed for 3G wireless networks.
Revenues generated by the end of 2009
Global market share by the Third Quarter of 2010.
Its global device market share.was 30% in the third quarter 2010, down from an estimated 34% in the third quarter 2009 and an estimated 33% in the second quarter 2010.
Nokia's estimated share of the converged mobile device market was 38% in the third quarter, compared with 41% in the second quarter 2010.
Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS).
Nokia net sales of EUR 10.3 billion, up 5% year-on-year and 3% sequentially (down 2% and up 1% at constant currency).
Devices & Services net sales of EUR 7.2 billion, up 4% year-on-year and 6% sequentially (down 5% and up 2% at constant currency).
Services net sales of EUR 159 million, up 7% year-on-year and 1% sequentially; billings of EUR 325 million, up 89% year-on-year and 10% sequentially.
Nokia total mobile device volumes of 110.4 million units, up 2% year-on-year and down 1% sequentially.
Devices & Services non-IFRS operating margin of 10.5%, down from 11.4% in Q3 2009 and up from 9.5% in Q2 2010.
NAVTEQ non-IFRS net sales of EUR 252 million, up 52% year-on-year and flat sequentially (up 47% and down 2% at constant currency).
Nokia Siemens Networks net sales of EUR 2.9 billion, up 7% year-on-year and down 3% sequentially (flat and down 4% at constant currency).
Nokia Siemens Networks non-IFRS operating margin of -3.9%, down from -1.9% in Q3 2009 and 1.7% in Q2 2010.
Nokia operating cash flow of EUR 439 million, and cash generated from operations EUR 1 206 million.
Total cash and other liquid assets of EUR 10.2 billion and net cash and other liquid assets of EUR 4.4 billion, at the end of Q3 2010.
INDUSTRY AND NOKIA expectations for the final quarter of 2010
Nokia expects Devices & Services net sales to be between EUR 8.2 billion and EUR 8.7 billion in the fourth quarter 2010.
Nokia expects its non-IFRS operating margin in Devices & Services to be between 10% and 12% in the fourth quarter 2010.
Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 3.4 billion and EUR 3.8 billion in the fourth quarter 2010.
Nokia now expects industry mobile device volumes to be up more than 10% in 2010, compared to 2009 (based on its revised definition of the industry mobile device market applicable beginning in 2010). Nokia previously expected industry mobile device volumes to be up approximately 10% 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 expect non-IFRS operating expenses in Devices & Services of approximately EUR 5.7 billion in 2010.
Nokia continues to expect Devices & Services non-IFRS operating margin of 10% to 11% in 2010.
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 continue to expect Nokia Siemens Networks to maintain its market share in 2010.
->Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks non-IFRS operating margin of breakeven to 2% in 2010.