Most people who hear the word "Nokia" associate it with mobile phones, but there's actually a convoluted history behind the company. Nokia has explored multiple lines of business since its humble beginnings over 150 years ago and in that process has reinvented itself many times over.
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Nokia is much older than most people know, but it was during the last few decades that the company became known for iconic mobile devices with bold design and technology. These ranged from a simple brick-like concept to unorthodox, sophisticated, and downright ridiculous form factors. The Finnish giant took part in shaping the history of telecommunications and mobile phones, which allowed it to grow into a global household name, but eventually became calcified by its own DNA and was forced to make a series of choices that brought it to its knees.
This article is an exploration of Nokia's history, from its humble beginning to becoming a dominant force in mobile technology and owning its own factories, down to a subdued presence in the approval process for a lineup of Android phones that carries only a hint of its former glory, a product line that sells moderately well thanks in no small part to a powerful nostalgia factor.
Nokia was founded in 1865 by Finnish mining engineer Fredrik Idestam, and started out as a simple paper mill operation in Tampere, a city located in south-western Finland. It wasn't long before Idestam expanded this operation to the nearby town of Nokia, which is located near the Nokianvirta River. Thus the "Nokia" name was born in 1871, inspired by this location.
In 1987, the company came up with the Mobira Cityman, the first true handheld mobile phone. All of its variants weighed a much more manageable 760 grams (1.7 pounds), and they worked great on the NMT network. Some may remember the Mobira Cityman 900, which was made famous by an image of Mikhail Gorbachev using one to call a Moscow official from Helsinki in 1987.
Nokia went on to build a strong relationship with suppliers throughout the US and Europe and built several factories in China and Mexico. That was a crucial component for the company's continued growth, but it was only one of several that contributed. Nokia Mobile Phones chief Ala-Pietilä sought to make mobile phones more attractive for consumers, and to that end he worked with engineers to have all Nokia phones achieve high standards of quality and usability, while also giving them a distinctive look and feel compared to the competition.
The Nokia 9000 also sported a rudimentary web browser. The biggest draw of this device, however, was that it ran a PEN/GEOS 3.0 operating system that closely emulated the experience of running Windows 95 on a desktop PC, with applications like Notes, Calendar, Calculator, Composer, Serial Terminal, Telnet, and a world time clock.
Nokia executives also caught wind that Microsoft was seeking to forge partnerships with device manufacturers and mobile carriers to bring Windows to mobile devices. The Redmond giant had already succeeded in capturing a majority of the PC market using this strategy, but Nokia didn't want to become a mere "hardware supplier" as it didn't want to compete on low margins.
It also helped greatly that Nokia was busy staying on top of tech innovations around the GSM standard. In Europe, people were more reliant on pay-as-you-go mobile plans, which led to a habit of saving money using text messages when a phone call could be avoided. Nokia designed the 3210 and 3310 with this in mind, so it made the numeric keypad keys larger, added T9 predictive text technology to make texting faster and easier, and pre-installed "picture messages" that today would look like fossils of the emoji world.
The company also established a "Digital Convergence Unit" led by Anssi Vanjoki, who was enthusiastic about the many opportunities afforded by color displays, more efficient mobile chipsets, and the Symbian platform.
This had an immediate positive effect on Nokia's performance in every market except the US, which posed some unique challenges the company couldn't overcome. For one, the US market was mostly consolidated among a few carriers, and they all wanted to sell phones locked to their own networks. Nokia tried selling "unlocked" phones instead, and these were mostly GSM models in a region dominated by carriers that were pushing CDMA. The outcome was that Nokia's market share dropped into the single digits and remained there.
Nevertheless, Nokia was proud of its N-series phones. Anssi Vanjoki, who was then head of the company's Multimedia Business Group, told NBC News that Nokia had already become a symbol of mobility, and the N-series phones were meant to "define a completely new category, which is multimedia." As for the N91, Vanjoki explained that "its multiple connectivity and powerful performance in all areas truly makes it the best mobile connected jukebox."
For Nokia, moving to Android would have been relatively low-risk for a number of reasons. The first was that Nokia had recently ended its legal fight with Qualcomm, and was planning to use the latter's MSM chipsets in future phones. This would instantly solve the issue of compatibility with the Android OS, and provide access to an arguably better app ecosystem, complete with a larger population of developers. At the same time, the combined might of Nokia and Google could have given both a strong foothold in the mobile space.
Despite many fans yearning for Nokia to return to the consumer market in one way or another, the company quashed any rumors that suggested it had plans to do so. At the same time, it was eager to get rid of its HERE mapping unit, which was operating at a loss. Uber expressed interest in acquiring it for $3 billion, but Nokia ended up selling it to a consortium formed by BMW, Daimler, and Audi for a similar amount.
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