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INTRODUCTION

Nokia Corporation is a Finnish multinational communications corporation that isheadquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.Nokia is engaged in the manufacturing of mobile devices and in converging Internet and

communications industries, with over 132,000 employees in 120 countries, sales in morethan 150 countries and global annual revenue of over 42 billion and operating profit of2 billion as of 2010. It is the world's largest manufacturer of mobile phones: its globaldevice market share was 23% in the second quarter 2011. Nokia's estimated share of theconverged mobile device market was 31% in the fourth quarter, compared with 38% inthe third quarter 2010. Nokia produces mobile devices for every majormarket segmentand protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internetservices such as applications, games, music, maps, media and messaging through its Oviplatform. Nokia's joint venture with Siemens, Nokia Siemens Networks producestelecommunications networkequipment, solutions and services. Nokia is also engaged inproviding free digital map information and navigation services through its wholly owned

subsidiary Navteq.

Nokia has sites forresearch and development, manufacture and sales in several countries;as of December 2010, Nokia had R&D presence in 16 countries and employed 35,870people in research and development, representing approximately 27% of the group's totalworkforce.The Nokia Research Center, founded in 1986, is Nokia's industrial researchunit consisting of about 500 researchers, engineers and scientists; it has sites in sevencountries: Finland, China,India,Kenya,Switzerland, theUnited Kingdom and theUnitedStates. Besides its research centers, in 2001 Nokia founded (and owns) INdT NokiaInstitute of Technology, a R&D institute located in Brazil. Nokia operates a total of 9manufacturing facilities located atSalo, Finland; Manaus, Brazil;Cluj, Romania; Beijing

andDongguan, China;Komrom, Hungary; Chennai, India; Reynosa, Mexico; andMasan, South Korea. Nokia's factory in Cluj was seized by the Romanian government inNovember 2011 to prevent a sale of the assets, after Nokia had accumulated a tax liabilityof US$ 10 million. Nokia's industrial design department is headquartered in Soho inLondon, UK with significant satellite offices in Helsinki, Finland andCalabasas,California in the US.

Nokia is apublic limited-liability company listed on theHelsinki,Frankfurt, andNewYorkstock exchanges. Nokia plays a very large role in the economy of Finland; it is byfar the largest Finnish company, accounting for about a third of the market capitalizationof the Helsinki Stock Exchange (OMX Helsinki) as of 2007, a unique situation for anindustrialized country.It is an important employer in Finland and several smallcompanies have grown into large ones as itspartnersandsubcontractors. In 2009, Nokiacontributed 1.6% to Finland's GDP, and accounted for about 16% of Finland's exports in2006.
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ki/Sohohttp://en.wikipedia.org/wiki/Calabasas,_Californiahttp://en.wikipedia.org/wiki/Public_limited_companyhttp://en.wikipedia.org/wiki/Helsinki_Stock_Exchangehttp://en.wikipedia.org/wiki/Frankfurt_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/Economy_of_Finlandhttp://en.wikipedia.org/wiki/List_of_Finnish_companieshttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Developed_countryhttp://en.wikipedia.org/wiki/Business_partnerhttp://en.wikipedia.org/wiki/Subcontractor


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The Nokia brand, valued at $25 billion, is listed as the 14th most valuable global brand inthe Interbrand/BusinessWeekBest Global Brands list of 2011.It is the 14th ranked brandcorporation in Europe (as of 2011), the 8th most admirableNetwork and OtherCommunications Equipmentcompany worldwide in Fortune's World's Most AdmiredCompanies list of 2011 and the world's 143th largest company as measured by revenue

in Fortune Global 500 list of 2011. In July 2010, Nokia reported a drop in profits by 40%,which turned into an operating loss of EUR 487 million in Q2 2011.In the globalsmartphone rivalry, Nokia held the 3rd place in 2Q2011, trailing behind SamsungandApple.

On 11 February 2011, Nokia announced a partnership with Microsoftwhere all futureNokia smartphones will be powered by the Windows Phone 7 (WP7) operating system.On 26 October 2011, Nokia unveiled its first WP7.5 powered handsets Lumia 710 and800.

History

Pre-telecommunications era

Fredrik Idestam,founder of Nokia.

Statesman LeoMechelin, co-founder of Nokia.

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).

Nokia's history starts in 1865 when mining engineerFredrik Idestam established a

groundwood pulp mill on the banks of the Tammerkoskirapids in the town ofTampere,in southwestern Finland in Russian Empire and started manufacturing paper. In 1868,Idestam built a second mill near the town ofNokia, fifteen kilometres (nine miles) westof Tampere by the Nokianvirta river, which had better resources forhydropowerproduction. 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 NokiaCompany, the name it is still known by today.
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Toward the end of the 19th century, Mechelin's wishes to expand into the electricitybusiness were at first thwarted by Idestam's opposition. However, Idestam's retirementfrom the management of the company in 1896 allowed Mechelin to become thecompany's chairman (from 1898 until 1914) and sell most shareholders on his plans, thusrealizing his vision. In 1902, Nokia added electricity generation to its business activities.[

[edit] Industrial conglomerate

In 1898, Eduard Poln founded Finnish Rubber Works, manufacturer ofgaloshes andother rubber products, which later became Nokia's rubber business. At the beginning ofthe 20th century, Finnish Rubber Works established its factories near the town of Nokiaand they began using Nokia as its product brand. In 1912, Arvid Wickstrm foundedFinnish Cable Works, producer oftelephone,telegraph and electrical cablesand thefoundation of Nokia's cable and electronics businesses. At the end of the 1910s, shortlyafter World War I, the Nokia Company was nearing bankruptcy. To ensure thecontinuation of electricity supply from Nokia'sgenerators, Finnish Rubber Works

acquired the business of the insolvent company. In 1922, Finnish Rubber Works acquiredFinnish Cable Works. In 1937, Verner Weckman, a sport wrestler and Finland's firstOlympic Gold medalist, became President of Finnish Cable Works, after 16 years as itsTechnical Director. AfterWorld War II, Finnish Cable Works supplied cables to theSoviet Union as part of Finland's war reparations. This gave the company a good footholdfor later trade.

The three companies, which had been jointly owned since 1922, were merged to form anew industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia'sfuture as a global corporation. The new company was involved in many industries,producing at one time or another paper products, car and bicycle tires, footwear

(includingrubber boots), communications cables, televisions and other consumerelectronics, personal computers, electricity generation machinery, robotics,capacitors,military communications and equipment(such as the SANLA M/90 device and the M61gas maskfor the Finnish Army), plastics, aluminium and chemicals. Each business unithad its own director who reported to the first Nokia Corporation President,BjrnWesterlund. As the president of the Finnish Cable Works, he had been responsible forsetting up the companys first electronics department in 1960, sowing the seeds ofNokias future in telecommunications.

Eventually, the company decided to leave consumer electronics behind in the 1990s andfocused solely on the fastest growing segments in telecommunications.Nokian Tyres,

manufacturer of tires, split from Nokia Corporation to form its own company in 1988 andtwo years laterNokian Footwear, manufacturer of rubber boots, was founded During therest of the 1990s, Nokia divested itself of all of its non-telecommunications businesses.

Telecommunications era

The seeds of the current incarnation of Nokia were planted with the founding of theelectronics section of the cable division in 1960 and the production of its first electronic
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device in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967fusion, that section was separated into its own division, and began manufacturingtelecommunications equipment. A key CEO and subsequent Chairman of the Board wasvuorineuvosBjrn "Nalle" Westerlund (19122009), who founded the electronicsdepartment and let it run at a loss for 15 years.

Networking equipment

In the 1970s, Nokia became more involved in the telecommunications industry bydeveloping theNokia DX 200, a digital switch for telephone exchanges. The DX 200became the workhorse of the network equipment division. Its modular and flexiblearchitecture enabled it to be developed into various switching products. In 1984,development of a version of the exchange for theNordic Mobile Telephony network wasstarted.

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 ownedby the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name waschanged to Nokia Telecommunications.

In the 1970s and 1980s, Nokia developed the Sanomalaitejrjestelm ("Message devicesystem"), a digital, portable and encrypted text-based communications device for theFinnish Defence Forces. The current main unit used by the Defence Forces is theSanomalaite M/90(SANLA M/90).

First mobile phones

The Mobira Cityman 150, Nokia'sNMT-900 mobile phone from 1989 (left), compared totheNokia 1100 from 2003.The Mobira Cityman line was launched in 1987.
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The technologies that preceded modern cellular mobile telephony systems were thevarious "0G" pre-cellularmobile radio telephony standards. Nokia had been producingcommercial and some military mobile radio communications technology since the 1960s,although this part of the company was sold some time before the later companyrationalization. Since 1964, Nokia had developed VHF radio simultaneously with Salora

Oy. In 1966, Nokia and Salora started developing the ARPstandard (which stands forAutoradiopuhelin, orcar radio phone in English), a car-based mobile radio telephonysystem and the first commercially operated public mobile phone network in Finland. Itwent online in 1971 and offered 100% coverage in 1978.

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

Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed thecompany'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, Nokiaintroduced 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 under5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had aprice tag of 24,000 Finnish marks (approximately 4,560).Despite the high price, the firstphones were almost snatched from the sales assistants hands. Initially, the mobile phonewas a "yuppie" product and a status symbol.

Nokia's mobile phones got a big publicity boost in 1987, whenSoviet leaderMikhailGorbachev was pictured using a Mobira Cityman to make a call from Helsinki to hiscommunications minister in Moscow. This led to the phone's nickname of the "Gorba".

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 companyof their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-MobiraOy became Nokia Mobile Phones.

Involvement in GSM

Nokia was one of the key developers ofGSM(Global System for MobileCommunications), the second-generation mobile technology which could carry data aswell as voice traffic.NMT (Nordic Mobile Telephony), the world's first mobile telephonystandard that enabled internationalroaming, provided valuable experience for Nokia forits close participation in developing GSM, which was adopted in 1987 as the newEuropean standard for digital mobile technology.
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Nokia delivered its first GSM network to the Finnish operatorRadiolinja in 1989. Theworld's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over aNokia-supplied network, by then Prime Minister of FinlandHarri Holkeri, using aprototype Nokia GSM phone. In 1992, the first GSM phone, theNokia 1011, waslaunched. The model number refers to its launch date, 10 November.The Nokia 1011 did

not yet employ Nokia's characteristic ringtone, theNokia tune. It was introduced as aringtone in 1994 with theNokia 2100 series.

GSM's high-quality voice calls, easy international roaming and support for new serviceslike text messaging (SMS) laid the foundations for a worldwide boom in mobile phoneuse.GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008accounting for about three billion mobile telephone subscribers in the world, with morethan 700 mobile operators across 218 countries and territories. New connections areadded at the rate of 15 per second, or 1.3 million per day.

Recent history

Product releases

Reduction in size of Nokia mobile phones

Evolution of theNokia Communicator. Models 9000, 9110, 9210, 9300 and 9500 shown.

Nokia released its first touch screen phone, the Nokia 7710, which was a huge success. InMay 2007, Nokia announced that itsNokia 1100 handset, launched in 2003, with over200 million units shipped, was the best-selling mobile phone of all time and the world'stop-sellingconsumer electronics product. In November 2007, Nokia announced andreleased theNokia N82, its first Nseries phone with Xenon flash. At the Nokia Worldconference in December 2007, Nokia announced their "Comes With Music" program:
http://en.wikipedia.org/wiki/Radiolinjahttp://en.wikipedia.org/wiki/Helsinkihttp://en.wikipedia.org/wiki/Prime_Minister_of_Finlandhttp://en.wikipedia.org/wiki/Harri_Holkerihttp://en.wikipedia.org/wiki/Nokia_1011http://en.wikipedia.org/wiki/Nokia_tunehttp://en.wikipedia.org/wiki/Nokia_2000_serieshttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Nokia_Communicatorhttp://en.wikipedia.org/wiki/Nokia_Communicatorhttp://en.wikipedia.org/wiki/Nokia_1100http://en.wikipedia.org/wiki/Nokia_1100http://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Nokia_N82http://en.wikipedia.org/wiki/Flashtubehttp://en.wikipedia.org/wiki/File:All_9xxx.pnghttp://en.wikipedia.org/wiki/File:All_9xxx.pnghttp://en.wikipedia.org/wiki/File:Nokia_evolucion_tama%C3%B1o.jpghttp://en.wikipedia.org/wiki/File:Nokia_evolucion_tama%C3%B1o.jpghttp://en.wikipedia.org/wiki/Radiolinjahttp://en.wikipedia.org/wiki/Helsinkihttp://en.wikipedia.org/wiki/Prime_Minister_of_Finlandhttp://en.wikipedia.org/wiki/Harri_Holkerihttp://en.wikipedia.org/wiki/Nokia_1011http://en.wikipedia.org/wiki/Nokia_tunehttp://en.wikipedia.org/wiki/Nokia_2000_serieshttp://en.wikipedia.org/wiki/Mobile_network_operatorhttp://en.wikipedia.org/wiki/Nokia_Communicatorhttp://en.wikipedia.org/wiki/Nokia_1100http://en.wikipedia.org/wiki/Consumer_electronicshttp://en.wikipedia.org/wiki/Nokia_N82http://en.wikipedia.org/wiki/Flashtube


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Nokia device buyers are to receive a year of complimentary access to music downloads.The service became commercially available in the second half of 2008.

Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee.Work began in April 2008, and the film premiered in October 2008.

In 2008, Nokia released theNokia E71 which was marketed to directly compete with theotherBlackBerry-type devices offering a full "qwerty" keyboard and cheaper prices.Nokia announced in August 2009 that they will be selling a high-end Windows-basedmini laptop called theNokia Booklet 3G. On September 2, 2009, Nokia launched twonew music and social networking phones, the X6 and X3. The Nokia X6 features 32GBof on-board memory with a 3.2" finger touch interface and comes with a music playbacktime of 35 hours. The Nokia X3 is a first series 40 Ovi Store-enabled device. The X3 is amusic device that comes with stereo speakers, built-in FM radio, and a 3.2 megapixelcamera. On September 10, 2009, Nokia unveiled a new handset, the 7705 Twist, a phonewith a sports square shape that swivels open to reveal a full QWERTY keypad.The new

mobile, which will be available exclusively through Verizon Wireless, features a 3megapixel camera, web browsing, voice commands and weighs around 3.44 ounces(98 g).

Plant movements

Nokia opened its Komrom, Hungary mobile phone factory on May 5, 2000.

In March 2007, Nokia signed a memorandum with Cluj CountyCouncil, Romania toopen a new plant near the city in Jucucommune. Moving the production from theBochum, Germany factory to a low wage country created an uproar in Germany.[78][79]

Nokia recently moved its North American Headquarters to Sunnyvale.

[edit] Reorganizations

In April 2003, the troubles of the networks equipment division caused the corporation toresort to similar streamlining practices on that side, including layoffs and organizationalrestructuring. This diminished Nokia's public image in Finland, and produced a numberofcourt cases and an episode of a documentary television show critical of Nokia.

On February 2006, Nokia and Sanyo announced a memorandum of understanding tocreate a joint venture addressing the CDMA handset business. But in June, they

announced ending negotiations without agreement. Nokia also stated its decision to pullout of CDMA research and development, to continue CDMA business in selectedmarkets.

In June 2006, Jorma Ollila left his position as CEO to become the chairman ofRoyalDutch Shell and to give way forOlli-Pekka Kallasvuo.
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In May 2008, Nokia announced on their annual stockholder meeting that they want toshift to the Internet business as a whole. Nokia no longer wants to be seen as thetelephone company. Google, Apple and Microsoft are not seen as natural competition fortheir new image but they are considered as major important players to deal with.

In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan.Following early December, distribution ofNokia E71 is cancelled, both fromNTTdocomo and SoftBank Mobile. Nokia Japan retains global research & developmentprograms, sourcing business, and an MVNO venture ofVertu luxury phones, usingdocomo's telecommunications network.

Acquisitions

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

The Nokia E55 from the business segment of theEseriesrange

On September 22, 2003, Nokia acquired Sega.com, a branch ofSega which became themajor basis to develop the NokiaN-Gagedevice

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

On June 19, 2006, Nokia and Siemens AGannounced the companies would merge theirmobile and fixed-line phone network equipment businesses to create one of the world'slargest network firms,Nokia Siemens Networks.Each company has a 50% stake in theinfrastructure company, and it is headquartered in Espoo, Finland. The companiespredicted annual sales of 16bn and cost savings of 1.5 bn a year by 2010. About20,000 Nokia employees were transferred to this new company.
http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Nokia_E71http://en.wikipedia.org/wiki/NTT_docomohttp://en.wikipedia.org/wiki/NTT_docomohttp://en.wikipedia.org/wiki/NTT_docomohttp://en.wikipedia.org/wiki/SoftBank_Mobilehttp://en.wikipedia.org/wiki/MVNOhttp://en.wikipedia.org/wiki/Vertuhttp://en.wikipedia.org/wiki/Vertuhttp://en.wikipedia.org/wiki/List_of_acquisitions_by_Nokiahttp://en.wikipedia.org/wiki/Eserieshttp://en.wikipedia.org/wiki/Eserieshttp://en.wikipedia.org/wiki/Eserieshttp://en.wikipedia.org/wiki/Segahttp://en.wikipedia.org/wiki/Segahttp://en.wikipedia.org/wiki/N-Gagehttp://en.wikipedia.org/wiki/N-Gagehttp://en.wikipedia.org/wiki/Intellisynchttp://en.wikipedia.org/wiki/Siemens_AGhttp://en.wikipedia.org/wiki/Siemens_AGhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Espoohttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/File:Nokia_E55_01.jpghttp://en.wikipedia.org/wiki/File:Nokia_E55_01.jpghttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Nokia_E71http://en.wikipedia.org/wiki/NTT_docomohttp://en.wikipedia.org/wiki/NTT_docomohttp://en.wikipedia.org/wiki/SoftBank_Mobilehttp://en.wikipedia.org/wiki/MVNOhttp://en.wikipedia.org/wiki/Vertuhttp://en.wikipedia.org/wiki/List_of_acquisitions_by_Nokiahttp://en.wikipedia.org/wiki/Eserieshttp://en.wikipedia.org/wiki/Segahttp://en.wikipedia.org/wiki/N-Gagehttp://en.wikipedia.org/wiki/Intellisynchttp://en.wikipedia.org/wiki/Siemens_AGhttp://en.wikipedia.org/wiki/Nokia_Siemens_Networkshttp://en.wikipedia.org/wiki/Espoohttp://en.wikipedia.org/wiki/1000000000_(number)


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

16, 2006.

In July 2007, Nokia acquired all assets ofTwango, the comprehensive media sharingsolution for organizing and sharing photos, videos and other personal media. [98][99]

In September 2007, Nokia announced its intention to acquire Enpocket, a supplier ofmobile advertising technology and services.

In October 2007, pending shareholder and regulatory approval, Nokia boughtNavteq, aU.S.-based supplier of digital mapping data, for a price of $8.1 billion.Nokia finalized theacquisition on July 10, 2008.

In September, 2008, Nokia acquired OZ Communications, a privately held company withapproximately 220 employees headquartered in Montreal, Canada.

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

On September 11, 2009, Nokia announced the acquisition of "certain assets of PlumVentures, Inc, a privately held company which employed approximately 10 people withmain offices in Boston, Massachusetts. Plum will complement Nokias Social Location

services".

[

On March 28, 2010, Nokia announced the acquisition of Novarra, the mobile webbrowser firm from Chicago. Terms of the deal were not disclosed.Novarra is a privatelyheld company based in Chicago, IL and provider of a mobile browser and serviceplatform and has more than 100 employees.

On April 10, 2010, Nokia announced its acquisition ofMetaCarta, whose technology wasplanned to be used in the area of local search, particularly involving location and otherservices.
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Operating systems

Photograph taken usingNokia N82TheNokia N8smartphone is the world's firstSymbian^3device, and the first camera phone to ever feature a 12megapixelautofocuslens.

The first Nseries device, the N90, utilised the olderSymbian OS8.1 mobile operatingsystem, as did the N70. Subsequently Nokia switched to using SymbianOS 9 for all laterNseries devices (except the N72, which was based on the N70). Newer Nseries devicesincorporate newer revisions of SymbianOS 9 that include Feature Packs. TheN800,N810 andN900 are as of July 2010 the only Nseries devices to not use Symbian OS.They use the Linux-based Maemo. Nokia stated that Maemo would be developedalongside Symbian.Maemo has since (Maemo "6" and beyond) merged withIntel'sMoblin, and become MeeGo, which will continue to be developed for mobile devices.

TheNokia N8 is the first device to function on the Symbian^3mobile operating

system.Nokia revealed that the N8 will be the last device in its flagship N-series devicesto ship with Symbian OS.[111][112]

Instead, Nokia will use Microsoft Windows Phone 7 for its high-end flagship devices,and revealed theNokia N9 will function on the MeeGomobile operating system.
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"Alliance" with Microsoft

On 11 February 2011, Nokia's CEO Stephen Elop, a formerMicrosoft employee,unveiled a new strategic alliance with Microsoft, and announced it would replaceSymbian and MeeGo with Windows Phone 7. Nokia will, however, retain Symbian for

use in mid-to-low-end devices. It will also invest into the Series 40platform and release asingle MeeGo product in 2011.[

This news has not been well-received by consumers, and has contributed to the decline inthe stock price by 11%.

As part of the restructuring plan, Nokia plan to reduce spending on research anddevelopment, instead refocusing on customising and enhancing the software line forWindows Phone 7. Nokia's "applications and content store" (Ovi) will be integrated intothe Windows Phone Marketplace, while Nokia Maps will be at the heart of Microsoft'sBing and AdCenter. Microsoft will provide developer tools to Nokia, to replace the Qt

framework which will not be supported by Windows Phone 7 devices.

Symbian is now described as a "franchise platform" with Nokia planning to sell 150million Symbian devices into the future. MeeGo emphasis will be on longer-termexploration with plans to ship "a MeeGo-related product" later this year. Microsoft'ssearch engine, Bing, will be the search engine for all Nokia phones. Nokia also will getsome level of customisation on WP7.[ After this announcement, Nokia's share price fellabout 14%, its biggest drop since July 2009.

As Nokia is the largest mobile phone manufacturer worldwide it is suggested the alliancewill make Microsoft's Windows Phone 7 a stronger contender against Android and iOS.

In June 2011, Nokia was overtaken by Apple as the world's biggest smartphone maker byvolume. In August 2011, Chris Weber, head of Nokia's subsidiary in the U.S., stated"The reality is if we are not successful with Windows Phone, it doesnt matter what we do(elsewhere)." He further added "North America is a priority for Nokia (...) because it is akey market for Microsoft."
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The term marketing mix was coined in the early 1950s by Neil Borden in his AmericanMarketing Association presidential address. This is one of the preliminary knowledgeevery marketer must have and is considered to be the basics of every marketing theory,which emerged henceforth.

The basic major marketing management decisions can be classified in one of thefollowing four categories, namely Product, Price, Place (distribution) and Promotion.

Product: It is the tangible object or an intangible service that is getting marketed throughthe program. Tangible products may be items like consumer goods (Toothpaste, Soaps,Shampoos) or consumer durables (Watches, IPods). Intangible products are service basedlike the tourism industry and information technology based services or codes-based

products like cellphone load and credits. Product design which leads to the productattributes is the most important factor. However packaging also needs to be taken intoconsideration while deciding this factor. Every product is subject to a life-cycle includinga growth phase followed by an eventual period of decline as the product approachesmarket saturation. To retain its competitiveness in the market, continuous productextensions though innovation and thus differentiation is required and is one of thestrategies to differentiate a product from its competitors.


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Price: The price is the simply amount a customer pays for the product. If the priceoutweigh the perceived benefits for an individual, the perceived value of the offering willbe low and it will be unlikely to be adopted, but if the benefits are perceived as greaterthan their costs, chances of trial and adoption of the product is much greater.

Place: Place represents the location where a product can be purchased. It is often referredto as the distribution channel. This may include any physical store (supermarket,departmental stores) as well as virtual stores (e-markets and e-malls) on the Internet. Thisis crucial as this provides the place utility to the consumer, which often becomes adeciding factor for the purchase of many products across multiple product categories.

Promotion: This represents all of the communications that a marketer may use in themarketplace to increase awareness about the product and its benefits to the targetsegment. Promotion has four distinct elements: advertising, public relations, personalselling and sales promotion. A certain amount of crossover occurs when promotion usesthe four principal elements together (e.g. in film promotion). Sales staff often play a

major role in promotion of a product.


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4 Ps of NOKIA

PRICE: The price is the simply amount a customer pays for the product. If the priceoutweigh the perceived benefits for an individual, the perceived value of the offering willbe low and it will be unlikely to be adopted, but if the benefits are perceived as greaterthan their costs, chances of trial and adoption of the product is much greater.

By assessing what people can spend for some products, analyzing the buying patterns,and knowing the trends NOKIA intelligently set a price that will be attractive enough tothe customer and yet bring it profits. If a product is in demand and the current price is notjustifying the cost then NOKIA by testing pricing, discounts, and doing in-depth researchon the competitions bottom-line. The end goal of every campaign is to increaseprofitability, which reducing costs, while the main motive is to increase its decreasemarket share.

PRICING TREND IN INDIA

On the basis of incomes, people are classified into segments such as:

Below poverty linePoorLower middle classMiddle classUpper middle classAffluent / rich

NOKIA by keeping this in their business policy they sets the price of their handsets that itwill touch all classification according to income segments in India. A wide range ofproducts for all these segment NOKIA stays on top from past 10 years in INDIA becausethe main reason behind this is CUSTOMER VALUE and SATISFACTION.

As VALUE increases as QUALITY,SERVICE increases and decreases as PRICE

decreases.

The lowest price mobile available in the market is Nokia 1203.


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PRICE: Rs. 800

With a good talk time, standby and best quality Nokia 1203 in a price segment mainly forlow income level peoples presented by NOKIA. Similarly with the variety of mobilehandsets in INDIA, Nokia targeting all the segment in India on the income level.

Nokia E7 Rs.25510

Nokia N900 Rs.22495Nokia N8 Rs.21523

Nokia X7-00 Rs.20864

Nokia N97 Mini Rs.18225

Nokia E6-00 Rs.17378

Nokia C7 Rs.16714

Nokia X6 16GB Rs.15695

Nokia E72 Rs.15168

Nokia X6 8GB Rs.14043

Nokia C6-01 Rs.12934

Nokia E71 Rs.12901

Nokia C6 Rs.11058Nokia E52 Rs.10036

Nokia 5530 XpressMusic Rs.9750

Nokia 6700 Slide Rs.9697

Nokia X5-01 Rs.9242

Nokia E5 Rs.9137

Nokia 5235 Comes With Music Rs.8715

Nokia C5-03 Rs.8497

Nokia C3-01 Rs.8208

Nokia E63 Rs.7954

Nokia X3-02 Rs.7719

Nokia 5250 Rs.7433Nokia C5 Rs.7396

Nokia 5230 Rs.7295

Nokia 3710 Fold Rs.7150

Nokia X3 Rs.6700

Nokia 5233 Rs.5999

Nokia 6303i Classic Rs.5886

Nokia C3 Rs.5853
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Nokia 7230 Rs.5822

Nokia C2-06 Rs.4999

Nokia C2-02 Rs.4999

Nokia C2-03 Rs.4999

Nokia 7020 Rs.4613

Nokia X2 Rs.4352Nokia C2-01 Rs.3919

Nokia 5130 XpressMusic Rs.3880

Nokia 2730 Classic Rs.3653

Nokia X2-01 Rs.3479

Nokia 2700 Classic Rs.3474

Nokia 2720 Fold Rs.2899

Nokia C2-00 Rs.2767

Nokia 2690 Rs.2550

Nokia 2220 Slide Rs.2325

Nokia C1-01 Rs.2195

Nokia C1-02 Rs.1847Nokia X1-01 Rs.1839

Nokia 5030 XpressRadio Rs.1597

Nokia C1-00 Rs.1508

Nokia 1800 Rs.1497

Nokia 1616 Rs.1176

Nokia 1280 Rs.986

Nokia 1203 Rs.800

Where as some costly handsets for the rich is arriving with a heavy price India areLUMIA 800 and N9 with price 29000 and 35000 respectively. So a company that thinkabout every standard of living.
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In 2008 when the other mobile local and international companies entered in market,Nokia had made unexpected move to give a tough competition to other mobile titans inthe market. Nokia had slashed down its price by 10 %. This step had taken under theprice strategy of Nokia as maintain its position to rule over the mobile market of the

world.

NOKIA SLASHED DOWN ITS PRICE BY 10 % IN 2008

Under the price of marketing mix Nokia analysis point on these:

Prices start from mere Rs.1200 to more than Rs.50, 000 to suit all class of people.

Nokia also offer cash allowances.

It uses skimming price strategy.

Price skimming strategy of Nokia

Price skimming is apricing strategy in which a marketersets a relatively high price for aproduct orservice at first, then lowers the price over time. It is a temporal version ofprice discrimination/yield management. It allows the firm to recover its sunk costsquickly before competition steps in and lowers the market price.

Price skimming is sometimes referred to as riding down the demand curve. The objectiveof a price skimming strategy is to capture the consumer surplus. If this is done
http://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/wiki/Sunk_costhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Consumer_surplushttp://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/wiki/Sunk_costhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Consumer_surplus


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successfully, then theoretically no customer will pay less for the product than themaximum they are willing to pay. In practice, it is almost impossible for a firm to captureall of this surplus.

Reasons for price skimming

Price skimming occurs in mostly technological markets as firms set a high price duringthe first stage of the product life cycle. The top segment of the market which are willingto pay the highest price are skimmed of first. When the product enters maturity the priceis lowered.


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SWOT Nokia

Strengths

Experience 142 year of history Strong financial support for R & D (1.4 billion USD) Largest network of selling & distribution Strong customer relation Wide range of products for all class High Resale value compared to other competitors Durability Long battery life User friendly Global Expansion


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Weakness

N Gage is a flop. Low camera, music quality in comparison with others Less stylish in low priced products

Heavy sets Market skimming prices of high sets Unlike I phone apple, Nokia N97 is complex, tough and not user friendly

Opportunities

New growth markets Other hand held devices Well designed and styled sets Increase their presence in 3G & edge market Improvise on quality of camera

Mini notebooks

Threats

China mobiles It has made exact copy of Nokia N96 Cheap & wide range models from Motorola Sales may decline due to global economic downturn I phone apple A fierce competitor for Nokia N9

my marketing)

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