Recently, Microsoft successfully completed the acquisition of one of the biggest mobile phone companies in the world – Nokia. It instantly brought an end to a major era. In the last few years, Nokia experienced a lot of ups and downs. In this post, we look back at the times Nokia was a success, and how it went forward about its business in the market.
The Early Years
In 1865, Fredrik Idestam constructed a paper manufacturing factory in Southern Finland. It wasn’t long before he launched a second factory in a nearby town called Nokia. Just three years later, Fredrik Idestam transformed this company to a share company. The name given to the company was Nokia.
Throughout the 19th century, especially in the 1960s, Nokia started strengthening its hold in the field of electronics. Within a couple of years, Nokia designed and developed a wide range of electronic devices, including mobile phones and radio telephones.
In 1979, the company took major steps into the mobile phone industry by coming up with Mobira Oy with a popular Finnish TV company Salora. Soon, both companies launched the NMT or Nordic Mobile Telephone service. It was considered to be the first global cellular network in the world. In 1980s, Nokia launched the first car phone, which was called Mobira Senator.
Soon after its launch, the company launched Mobira Cityman, which was the first mobile phone to run on Nokia’s NMT network. This device was priced at $6,308, and weighed only 800 grams. Though it was expensive and heavy by modern day standards, it instantly hit cult status after Mikhail Gorbachev started using the device.
The Glory years
According to industry experts, 1990s are considered to be the most successful years for the company. In 1994, the company introduced the Nokia 2100 with the symbolic Nokia ringtone. Nokia phones in the next few years were launched with Snake, which is still one of the most widely recognized mobile phone games. Nokia 2100 was one of the most widely sold mobile phones. The company was able to sell over 20 million devices around the world.
In 1997, the company introduced the Communicator in the market. At the time, this device was considered to be ahead of its time. It won’t be wrong to say that the Communicator was quite cool and ahead of its time. This device from the Finnish company also came with extraordinary features, including fax, email, massive display and calendar.
In the same year, Nokia launched two more device – 5110 and 6110. These devices were also considered to be ahead of their time. Competing companies were quite worried by Nokia’s modern take on the mobile phone industry. The new devices from Nokia features a sleeker way of sending texts with a customized menu system offering colored snap-on covers.
These popular devices were followed by Nokia 7110, which came with standard web functions. Nokia 7650 came with a built-in high resolution camera, and Nokia 6650 was the first 3G enabled smartphone from the company.
In late 1990s, Nokia was firmly established as one of the leading mobile phone companies. People were mesmerized by Nokia phones, and the company’s rivals like Sony, Siemens and Apple weren’t able to predict the universal demand. The company’s turnover during this period was exceptional.
There’s no doubt that 1990s were the company’s most glorious years. However, the tremendous success of the company didn’t last very long after budget smartphone started getting introduced to the market on a regular basis. After the successful 1990s, things started going downhill in 2007. In fact, everything went down rapidly.
In 2009, Nokia posted the first quarterly loss in over a decade. This shocked the financial experts in the industry. The results were based on the fact that HTC was developing a new smartphone, which ran on Google’s Android operating system.
During this period, iPhones and all kinds of Android devices were taking the mobile phone industry by storm. Sadly, Nokia was unable to keep up with competitors. Rather than joining other companies in the market, Nokia joined hands with Microsoft to develop a wide range of smartphones running on Microsoft Windows Phone Platform.
Through this partnership, the company noticed a great period in the development of Nokia Lumia series. However, the company didn’t want to back to its glory days. In simple terms, it wasn’t able to keep up with other budget phone companies. On 3rd September, 2013, Nokia made an announcement about Microsoft acquiring its hardware department. The deal was worth $7.2 billion. It took a few months, but the deal was successfully completed.