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Nokia is known today as the largest manufacturer of mobile phones , having about 40 percent of the world market share in the second quarter of 2008. This company is even the reason why Finland is a prosperous country in which it is accounted for about 30 percent of the nation's market capitalization. But Nokia had a really humble beginning-it all started in 1865. In 1865, an engineer named Fredrik Idestam started a wood-pulp mill and started manufacturing paper in southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the company's sales achieved its high-stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then to the United Kingdom and France. The Nokia factory employed a fairly large workforce and a small community grew around it. In southern Finland a community called Nokia still exists on the riverbank of Emkoski.

Nokia is known today as the largest manufacturer of mobile phones , having about 40 percent of the world market share in the second quarter of 2008. This company is even the reason why Finland is a prosperous country in which it is accounted for about 30 percent of the nation's market capitalization. But Nokia had a really humble beginning-it all started in 1865. In 1865, an engineer named Fredrik Idestam started a wood-pulp mill and started manufacturing paper in southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the company's sales achieved its high-stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then to the United Kingdom and France. The Nokia factory employed a fairly large workforce and a small community grew around it. In southern Finland a community called Nokia still exists on the riverbank of Emkoski.

Finnish Rubber Works, a manufacturer a Rubber goods, impressed with the hydro-electricity produced by the Nokia wood-pulp (from river Emkoski), merged up and started selling goods under the brand name on Nokia. After World War II, it acquired a major part of the Finnish Cable Works shares. The Finnish Cable Works had grown quickly due to the increasing need for power transmission and telegraph and telephone networks in the World War II. Gradually the ownership of the Rubber Works and the Cable Works companies consolidated. In 1967, all the 3 companies merged-up to form the Nokia Group. The Electronics Department generated 3 % of the Group's net sales and provided work for 460 people in 1967, when the Nokia Group was formed.

In 1970, digital phone developed by Nokia, replacing the traditional analog electro mechanical switches. This allowed for computer-controlled exchanges. The digital switch was built on Intel microprocessor. At the same time, new legislation allowed the Finnish telecommunications authorities to set up a mobile network for car phones that was connected to the public net. At the same time , development of a mobile network began. NMT (Nordic Mobile Telephony), this system was launched in 1981. Nokia had an important role in the development of the protocols and the network (which was analog). In the beginning of the 1980s, a new standard was launched, GSM (Global System for Mobile communication was quick to jump on the bandwagon, and started developing GSM mobile phones.

During the 1980s, Nokia's operations rapidly expanded to new business sectors and products. The strategy was to expand rapidly on all fronts. In 1988, Nokia was a large television manufacturer and the largest information technology company in the Nordic Countries. During the deep recession in Finland at the beginning of the 1990s, the telecommunications and mobile phones divisions were the supporting pillars of the Nokia. Despite the depth of the recession, Nokia came to its feet quickly as the company started streamlining its businesses. In May 1992 Nokia made the strategic decision to divest its non-core operations and focus on telecommunications. The company's 2100 series phone was an incredible success. In 1994, the goal was to sell 500,000 units. Nokia sold 20 million.

Nokia employs more than 60,000 people all over the world. Nokia invests 8.5% of net sales in research and development. Nokia has their annual Nokia Game - a genius marketing stunt gaining them massive attention. Slowly and steadily, Nokia became a large television manufacturer and also the largest information technology company in the Nordic countries. During the economic recession the Nokia was committed to telecommunications. The 2100 series of the production was so successful that in spite of its goal to sell 500,000 units, it marvelously sold 20 million. Presently, Nokia is the number 1 production in digital technologies; it invests 8.5% of net sales in research and development. Also has its annual Nokia Game.

Nokia's story continues with Nokia 6650, company's first 3G mobile phone and the start of new era in mobile gaming with the first N-gage device in the 2003! In the year 2005 Nokia introduces the next generation of multimedia devices, the famous Nokia Nseries and sells its billionth phone in the same year, a Nokia 1100, somewhere in Nigeria! The year 2006 is an important year, Olli-Pekka Kallasvuo becomes Nokia's new President and CEO; Jorma Ollila becomes Chairman of Nokia's board and Nokia and Siemens announced plans for Nokia Siemens Networks.

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