Connecting People

CEO OF NOKIA
STEPHEN ELOP

From the late 1980s, Nokia mobile phones have been manufactured by this Finnish company. They are biggest producer of mobile phones in the world, selling over a billion. They established a reputation for producing reliable mobiles that are easy to use, but have also started manufacturing smart phones. They recently entered into a partnership with Microsoft to use its Windows Phone 7 operating system for its next-generation smart phones. The Nokia Lumia 800 is one of the first handsets utilizing Windows Phone 7 made by Nokia.

Nokia's history started in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland in the Russian Empire and started manufacturing paper. Fredrik Idestam co-founder of Nokia. At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia and they began using Nokia as its product brand. Statesman Le o Mechelin, cofounder of Nokia.

The seeds of the current incarnation of Nokia were planted with the founding of the electronics section of the cable division in 1960 and the production of its first electronic device in 1962: a pulse analyzer designed for use in nuclear power plants.[21] In the 1967 fusion, that section was separated into its own division, and began manufacturing telecommunications equipment. A key CEO and subsequent Chairman of the Board was vuorineuvos Bjrn "Nalle" Westerlund (19122009), who founded the electronics department and let it run at a loss for 15 years.

The Mobira Talkman, launched in 1984, was one of the world's first transportable phones. Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachev was pictured using a Mobira Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone's nickname of the "Gorba"

In 1988 The Nokia-Mobira Oy became Nokia Mobile Phones. Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989

The world's first commercial GSM call was made on 1 July 1991 in Helsinki, Finland
In 1992, the first GSM phone, the Nokia 1011, was launched.

Nokia has launched one very affordable basic touch screen phone with dual SIM supportability.The phone has a 3.5 inch attractive WQVGA resistive touch screen which is bright enough to produce decent pictures and videos.The phone runs on Nokia S40 operating system and has all the basic functionality and very good music and video player.The all new Nokia Asha 305 comes with Forty EA games ready for download as well as a 2MP camera, Nokia Maps and the revolutionary Nokia Browser which helps significantly lower data costs.

NOKIA ASHA 305

With each Nokia Lumia you'll discover Live Tiles for instant updates on your Start screen, Internet Explorer 9 for superfast browsing, and beautifully sleek award-winning designs. Nokia Lumia experience the amazing everyday. Explore more with new Windows Phone OS on Nokia Lumia.

 Nokia Asha 302 Mobile (Mid Blue) By Nokia Starts at 6,285.00 Manufacturer Nokia Operating System Proprietary OS Megapixels 3.2 MP

 Nokia created their first climate strategy in 2006 and it was reviewed and updated in 2010. The strategy looks at the energy consumption and greenhouse gas emissions of their products and operations and sets reduction targets accordingly. While Nokia is not a particularly energy intensive company, theyve still made major improvements. Over a third (40% in 2011) of the energy they use to power their operations is renewable, reducing their CO2 emissions by around 55,000 tonnes per annum.

 We manufacture our phones primarily in our own factories and apply the highest standards to ensure safe and supportive labour conditions. Proximity to suppliers and partners also brings environmental benefits. Nokias Xingwang Industrial Park in China, a cluster of facilities including us and 12 partners, has achieved an annual decrease in energy consumption equivalent to nearly 45,000 tonnes of coal as well as water conservation of half a million tonnes. In 2010, Nokias Chennai factory in India won the 'Golden Peacock Environment Management Award - 2010, under the Telecom/ITHardware category. The award recognizes Nokias efforts in terms of effective implementation of Environmental Management System (EMS) and setting high standards in its management.

 Our supply chain consists of around a hundred direct suppliers for hardware, components and parts, and ---- hundreds of software suppliers. We also work with thousands of indirect suppliers providing services and equipment needed for our operations. Our global supply chain begins with raw material extraction and processing, ending in the manufacturing of components and final product assembly. There are typically four to eight supplier layers between Nokia and any mining activities. Our supply chain is spread around the world as it needs to deliver to our own production sites as well as to our offices worldwide. As we operate our own global manufacturing network, most manufacturing is done in-house complying with our strict social and environmental requirements. This also means that our first tier supplier line starts only after production.

Our aim is to ensure that sustainable practices are not separate add-on features but embedded within all our sourcing practices including supplier selection and relationship development. We expect our supplier network to do the same.

We believe that open communication, good relationships and transparency are key to success. We work closely with suppliers, customers, industry peers, nongovernmental organisations and other stakeholders.

We continually strive to improve our ways of working and develop our requirements, tools, methods and processes over time to enhance sustainability.

NOKIA N8

If a Clash of the Titans movie was to be made for the smartphone industry, it would certainly feature the Nokia N8 and the Samsung Galaxy S. These are the current creamof-the-crop handsets of the world's largest and secondlargest cell phone manufacturers. The Nokia N8 and Samsung Galaxy S might be the high road for both companies, but the purposes behind them are different.

SAMSUNG GALAXY S3

The Nokia N8 is a flagship phone with premium feel, and still, with Symbian^3, it feels like the pinnacle of Nokia that were, a peak hardware effort, before the Finnish company morphs into something yet unknown. Nokia wanted to make the highest end device to run a tried and true mobile OS that millions of users are accustomed to for years. In that respect, it is an evolutionary phone, despite some best-in-class features.
NOKIA N8

SAMSUNG GALAXY S3

The Samsung Galaxy S, on the other hand, represents the top effort of a novel path that Samsung undertook with Android, having the fastest graphics chipset in a phone, and an enormous 4 Super AMOLED screen. Nokia N8 is like the brilliant film of a beloved movie star at the zenith of their hectic carrier, while the Galaxy S is the straight-As grad student, ready to change the world.

The Nokia N8 and the Samsung Galaxy S are both touchscreenonly devices, and that is where the design similarities end. Nokia N8 is beautifully crafted from a single sheet of anodized aluminum, and exudes that premium feel, aided by the solid heft of the metal body.

Market cover story reports Samsung has overtaken Nokia in March 2012 in value terms. I would like to highlight that this is incorrect. The data that has used in the article quotes only Urban retail sales data from the GfK-Nielsen survey and is misrepresented as All India data. GfK-Nielsen's Urban data covers 793 cities and towns each with population more than 50,000, while its All India coverage is of 4,378 cities and towns and 586,000 villages.

According to the All India data from GfK-Nielsen for March 2012, Nokia is a clear leader of the overall Indian mobile handset industry - both in value and volume terms respectively.

For nine quarters, it has been a downward slide for Nokia in India. The Finnish phonemaker's vice-like grip on the India market has been slowly yet surely prised open by a raft of old and new rivals. Nokia ceded nearly half of its dominant share of the mobile phones market from a peak of 70 per cent between 2007 and now.

FINANCIAL HIGHLIGHTS

Net sales Gross profit Gross margin, % Research & development expenses

2011 EURm 38,659 11,319 29.3%

2010 EURm 42,446 12,817 30.2%

Change % -9% -12%

5,612
3,791 -1,073 1,825 4.7% -1,198

5,863
3,877 2,070 3,204 7.5% 1,786

-4%
-2%

Sales and Marketing expenses

Operating profit Operating profit (non IFRS) Operating margin (non IFRS), % Profit before taxes Profit attributable to equity holders of the parent Net cash from operating activities

-43%

-1,164

1,850

1,137

4,774

-76%

10 MAJOR MARKET SHARES

2010 EURm China India Germany Russia USA Brazil 7,149 2,952 2,019 1,744 1,630 1,506 2009 EURm 5,990 2,809 1,733 1,528 1,731 1,333

UK
Spain Italy Indonesia

1,470
1,313 1,266 1,157

1,916
1,408 1,252 1,458

SEGMENT INFORMATION

2011 EURm Devices & Services Net sales 23,943 1,683 7.0%

2010 EURm

Change %

29,134 3,162 10.9%

-18% -47%

Operating profit (non IFRS)

Operating margin (non IFRS), % Location & Commerce Net sales Operating profit (non IFRS) Operating margin (non IFRS), % Nokia Siemens Networks Net sales Operating profit (non IFRS) Operating margin (non IFRS), %

1,091

869

26%

48
4.4%

-173
-19.9%

14,041 225 1.6%

12,661 95 0.8%

11% 137%

SHARE PRICE PERFORMANCE PREVIOUS THREE YEARS

Share price performance previous 3 years