Nokia Oyj (NOK): history, ownership, mission, how it works & makes money

A Brief History of Nokia Oyj (NOK)

Founding and Early Years

Nokia was founded in 1865 by Fredrik Idestam, initially as a groundwood mill in the town of Tampere, Finland. The company began producing pulp and later expanded into rubber and cables in the late 19th century.

Diversification into Telecommunications

In the 1960s, Nokia began to diversify into the telecommunications industry, forming a joint venture with the Finnish state-owned telecommunications company, which led to the establishment of Nokia Telecommunications. By the 1980s, Nokia became a significant player in the mobile phone market.

Mobile Phone Boom

In 1992, Nokia launched the Nokia 1011, the world’s first mass-produced GSM phone. By 1998, Nokia had become the world’s largest mobile phone manufacturer, with a market share of 40% in the global mobile phone market.

Challenges and Decline

By the late 2000s, Nokia faced intense competition from companies like Apple and Samsung. In 2011, Nokia announced a partnership with Microsoft to develop smartphones using the Windows Phone operating system. However, by 2013, Nokia's market share had dwindled, leading to its Devices and Services division being sold to Microsoft for approximately €5.44 billion.

Strategic Shift and Focus on Networks

Following the sale, Nokia shifted its focus towards telecommunications infrastructure, becoming a leader in 5G technology. In 2020, Nokia reported a revenue of €21.9 billion with a net profit of €1.3 billion.

Recent Developments

As of 2023, Nokia has focused on enhancing its position in the network and software segments, with a strong emphasis on cloud technologies and security solutions. The company has invested heavily in research and development, allocating approximately €4.5 billion in R&D in 2022.

Stock Performance and Market Capitalization

As of October 2023, Nokia's stock price fluctuated around €4.20 per share, with a market capitalization of approximately €23.5 billion.

Outlook

Nokia continues to invest in expanding its 5G network infrastructure and exploring opportunities in cloud services, with analysts projecting revenue growth in the coming years driven by increased demand for telecommunications and network services.

A Who Owns Nokia Oyj (NOK)

Shareholder Composition

Nokia Oyj (NOK) has a diverse shareholder structure. As of the latest reports, the ownership is distributed among institutional investors, retail investors, and company insiders. Below is a breakdown of the major shareholders:

Major Institutional Shareholders

Among institutional investors, several key players hold significant amounts of Nokia shares:

Stock Performance

As of October 2023, Nokia's stock performance has shown fluctuations influenced by market conditions:

Executive Management and Board Members

Nokia's management and board play crucial roles in the company's direction. Key individuals include:

• Pekka Lundmark - President and CEO
• Markus Borchert - Executive Vice President, North America
• Raghav Sahgal - President, Cloud and Network Services
• Maria Varsellona - General Counsel and Secretary
• Tommi Uitto - President, Mobile Networks

Future Outlook

Nokia Oyj is positioned to leverage its 5G capabilities, with anticipated revenue growth driven by increased demand in telecommunications infrastructure. Analysts project a potential revenue increase of 10% year-on-year in the next fiscal period.

Nokia Oyj (NOK) Mission Statement

Mission Statement Overview

Nokia Oyj (NOK) has a defined mission statement which emphasizes its commitment to creating technology that connects people and drives innovation. The mission is reflected in its comprehensive service offerings and solutions embedded in the telecommunications, networking, and technology sectors.

Core Values

The core values underpinning Nokia's mission include:

• Innovation: Fostering creative solutions to enhance user connectivity.
• Integrity: Committing to ethical practices and transparency.
• Customer Focus: Prioritizing customer satisfaction through tailored technology solutions.
• Collaboration: Partnering with various stakeholders to maximize impact.

Recent Financial Performance

Nokia's financial performance in recent years illustrates the manifestation of its mission statement. As of Q2 2023, Nokia reported:

Strategic Goals

Nokia’s strategic goals align with its mission statement, aimed at fostering technological advancements and market leadership. The goals include:

• Accelerating 5G rollout across global markets.
• Enhancing software and services portfolio.
• Driving sustainability initiatives to reduce carbon footprint.
• Increasing investment in research and development by 10% annually.

Impact on Market Position

Nokia's mission statement significantly influences its market position, particularly in the 5G technology sector. Market analysis shows:

Future Directions

Nokia's future directions are key to fulfilling its mission. Upcoming initiatives include:

• Expansion into the Internet of Things (IoT) sector.
• Partnerships with major cloud providers.
• Advancing AI capabilities in network management.
• Commitment to achieving net-zero emissions by 2030.

Conclusion

The mission statement of Nokia Oyj (NOK) serves as a foundation for its operational and strategic focus, guiding the company's commitment to innovation and customer-centric solutions in a rapidly evolving technological landscape.

How Nokia Oyj (NOK) Works

Company Overview

Nokia Oyj, headquartered in Espoo, Finland, operates primarily in the telecommunications industry, focusing on network services, technology development, and product solutions. As of October 2023, Nokia's revenue for the full year 2022 was reported at €24.9 billion, with an operating profit of €3.7 billion.

Business Segments

Nokia's operations are divided into several segments:

• Network Infrastructure
• Cloud and Network Services
• Mobile Networks
• Network Access
• Advanced Technologies

Financial Performance

As per the full-year 2022 financial report, Nokia's key financial metrics were:

Research and Development

Nokia invests heavily in R&D, with a reported expenditure of €5.3 billion in 2022, representing approximately 21% of its revenue.

Market Presence

Nokia operates in over 130 countries. The company reported a market share of approximately 22% in the global telecommunications equipment market.

Key Partnerships and Collaborations

Nokia has established significant partnerships, including:

• Partnership with Microsoft for cloud services
• Collaboration with Intel for network infrastructure
• Joint venture with Ericsson for 5G technology development

Stock Performance

Nokia's stock (NOK) performance in October 2023 was as follows:

Sustainability Efforts

Nokia is committed to sustainability and aims to achieve a 50% reduction in its carbon footprint by 2030.

How Nokia Oyj (NOK) Makes Money

Revenue Streams

Nokia Oyj generates revenue through a variety of segments:

• Network Infrastructure
• Mobile Access
• Cloud and Network Services
• Software
• Licensing and Other

Key Partnerships

Nokia engages in various partnerships to enhance its market reach and technology offerings:

• Partnerships with telecom operators for infrastructure deployment
• Collaborations with cloud service providers
• Joint ventures in research and development

Market Segmentation

The company also segments its business operations by geography:

Investment in R&D

Investment in research and development is crucial for Nokia's financial strategy:

• R&D expenditure in 2021: EUR 5.3 billion
• R&D expenditure in 2022: EUR 5.5 billion
• Estimated R&D expenditure in 2023: EUR 5.7 billion

Financial Performance Metrics

Key financial metrics that reflect Nokia's performance include:

Licensing Revenue

Nokia also earns revenue through patent licensing:

• Number of active patents: Approximately 20,000
• Annual licensing revenue: EUR 1.1 billion in 2022
• Projected licensing revenue for 2023: EUR 1.2 billion