The story of Nokia is no less than a roller coaster ride. The company which once ruled the cellular phone market, taken over by its much smaller competitor, is not only a good case study for future business graduates but also a lesson to be learnt in the history that even if you are on the top and refuse to learn to change with the passage of time, you will be buried in the pages of history.
Once upon a time, in the picturesque town of Espoo, Finland, a small pulp mill was established along the banks of the Tammerkoski River. Little did anyone know that this humble beginning would give rise to one of the most influential tech companies in history – Nokia.
The year was 1865 when mining engineer Fredrik Idestam founded the Finnish Rubber Works Oy, which later merged with another company to create the Nokia Ab in 1927. Initially focused on producing paper products, electrical cables, and rubber boots, Nokia made its first foray into telecommunications during World War II by manufacturing field phones for the military. This marked the start of an incredible journey in communication technology.
In the late ’60s, Nokia started developing radio-based telephone networks, leading to the creation of the world’s first international car phone system in partnership with Mobira in 1981. By 1984, they introduced the iconic “Mobira Cityman,” the first handheld portable phone weighing just over two pounds! It retailed for around $5,300 – quite a hefty price tag even by today’s standards.
However, things really took off in 1987 when Nokia acquired Salora Oy, merging their expertise to form Mobile Phones Ltd., launching the highly successful Mobira Cityman 900 model. In 1991, they released the Nordic Mobile Telephone (NMT) standard compatible device called the Nokia 1011, selling more than 80 million units worldwide.
By the mid-’90s, under CEO Jorma Ollila’s leadership, Nokia began dominating the global mobile phone market. They launched several groundbreaking devices such as the Communicator series and the indestructible 3310. Their innovative design, user-friendly interfaces, and unbeatable pricing strategy propelled them to become the undisputed market leader. Remember Snake, the addictive game preinstalled on many Nokias? That simple feature brought joy to millions while solidifying brand loyalty.
At its peak in 2007, Nokia held approximately half of the global cellular phone market share. But soon after, Apple introduced the iPhone, followed closely by Google releasing Android OS, both disrupting the industry with touchscreens and app-centric experiences. Despite attempts like the Nokia N97 and Lumia range running Windows Phone OS, Nokia struggled to adapt quickly enough to these changes.
Internal issues further plagued Nokia. Intra-company politics led to missed opportunities and delayed decision-making processes. Additionally, Microsoft’s acquisition of Nokia’s Devices & Services division in 2014 failed to revitalize the struggling giant, eventually selling the remains back to Nokia in 2016.
Today, HMD Global holds the license to manufacture smartphones using the esteemed Nokia name. Although no longer at the forefront, remnants of Nokia’s glory days remain visible through robust networking infrastructure solutions and occasional nods to classic designs like the recent reboot of the legendary banana phone, the 8110 4G.
From a Finnish pulp mill to a communications titan and back again, Nokia’s story serves as a powerful reminder of innovation, success, and missteps. While competition and technological advancements may have dethroned Nokia from its pedestal, we can only wait patiently for what could potentially be Act III of this remarkable saga.
