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Nokia cell phones

Nagdev Nilesh

vengabeats@hotmail.com

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Contents

Sr.no Topics Page no


1 Introduction 6
2 Paper was the beginning 7-8
Expanding into
3 9-11
electronics
The journey into
4 12-13
telecommunications
5 New Products 14
6 Today’s leader 15-18
Focusing on
7 19-20
Telecommunications
8 Material Extraction 21-26
9 Lifecycle Analysis 27-34
Batteries used in Nokia
10 35-39
cell phones
11 2004-Year of Records 40
12 Nokia Key figures 2004 41
13 Total Net sales 42
14 Net sales by a country 43
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15 Strong Nokia Team 44


Nokia Cell Phones
16 45
Launched In 2004
17 Nokia’s Top 5 Priorities 46
18 Conclusion 47
19 Bibliography 48

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Introduction

Nokia's history starts in 1865, when engineer Fredrik


Idestam established a wood-pulp mill in southern
Finland and started manufacturing paper. Due to the
European industrialization and the growing
consumption of paper and cardboard Nokia soon
became successful.

Nokia's products were exported first to Russia and


then to the UK and France. The Nokia factory
attracted a large workforce and a small community
grew up around it. A community called Nokia still

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exists on the riverbank of Emäkoski in southern


Finland.

Paper was the Beginning

Nokia was founded in 1864 (1865) near the Nokia


river in Finland. There were a lot of forests, rivers
and lakes: it was Finland's national pride. So such
conditions allowed to paper industry to rise. A Finnish
engineer Fredrik Idestam became one of the
businessmen in this industry. Unfortunately, he didn't
have enough experience in this business so he
acquired technology from Germans.

Idestam visited one paper manufacturing plant in


Germany. Its owner has developed the technology
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for years and kept it as a very big secret. But


Idestam convinced workers to show him the plant.
They made a real exhibition for Finnish engineer.
When the plant owner saw this he was frustrated and
threw the "guest" out. But this wasn’t a problem,
because Idestam saw everything he needed.

When Idestam came back to Finland, he created his


own paper manufacturing plant. After a few years, in
1867, he presented his wood pulp invention in the
Paris Wood Exposition and was awarded a Bronze
Medal. After this everyone knew Nokia, so Idestam
started putting Nokia brand on all products. And
when company started offering some new products
after a few years, Idestam was still putting the brand
on all of them. Today's marketing specialists even
added Idestam's innovation to manuals.

But not all Idestam's actions very innovatory. When


his son-in-law Gustaf Fogelholm (who became
Nokia's president in 1895) decided to start the power
generation business, Fredrik Idestam was the main
opponent of this idea. But Gustaf won against his

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father-in-law and established the first power plant in


1903 and second in 1913.

Expanding to electronics

After World War II the Finnish Rubber Works bought


the majority of the Finnish Cable Works shares. The
Finnish Cable Works was a company that had grown
quickly due to the increasing need for power
transmission and telegraph and telephone networks.

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Gradually the ownership of the Rubber Works and


the Cable Works companies consolidated. In 1967
the companies were merged to form the Nokia
Group.

The Finnish Cable Works had manufactured cables


for telegraph and telephone networks and in the
1960 they established the Cable Works Electronics
department. At this time the seeds of Nokia's global
success in telecommunications were planted. In
1967, when the Nokia Group was formed, Electronics
generated three percent of the Group's net sales and
provided work for 460 people.

In 1977 Kari Kairamo became Nokia's president.


Kairamo had gained experience by working in the
USA, and unlike his predecessors who leaned
towards Soviet Union; he was strongly western-
oriented. He wanted to handle things "off the record"
through unofficial meetings, and considered personal
relationships particularly important. Compared to his
predecessors, Kairamo was also keener on appearing

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in public. During Kairamo's era, the emphasis was on


electronics and power generation.

Consumer electronics became Nokia's main business


in 1987. Kairamo strived to make the company more
international and turn its gaze on Europe. Under
Kairamo's leadership, Nokia made a few large-scale
acquisitions (televisions and computers), which were
not without risks, however, as it turned out.

In 1986, Kairamo restructured the corporate


governance by establishing a new internal Board of
Directors, which he became Chairman of.

Kari Kairamo was a charismatic and emphatic leader


who liked to mingle with people. His enormous
energy was, however, tragically exhausted in 1988
when Nokia was heading to financial doldrums due to
loss-making and businesses that were just too
diverse.

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The Journey into


Telecommunications
Nokia´s Cable Work's Electronics department started
to conduct research into semiconductor technology
in the 1960´s. This was the beginning of Nokia’s
journey into telecommunications.

In the early 1970s, the majority of telephone


exchanges were electro-mechanical analog switches.
Nokia began developing the digital switch (Nokia DX
200) which became a success. Nokia DX 200, which
was equipped with high-level computer language and
Intel microprocessors gradually evolved into the
multifaceted platform that is still the basis for Nokia's
network infrastructure today.

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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 network.

The result was Nordic Mobile Telephony (NMT).


Opening in 1981, NMT was the world's first
multinational cellular network. During the following
decade, NMT was introduced in many other countries
and launched the rapid expansion of the mobile
phone industry.

At the end of the 1980s a common standard for


digital mobile telephony was developed. This
standard is known as GSM (Global System for Mobile
Communications). In 1991 Nokia made agreements
to supply GSM networks to nine European countries
and by August 1997 Nokia had supplied GSM
systems to 59 operators in 31 countries.

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New Products

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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.

Today’s Leader

Current Nokia's CEO Jorma Ollila was invited in 1986


by Kari Kairamo. Ollila was Senior Vice President and
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CFO (1986-89), after which he became the President


of the Mobile Phone Division. He became president
and CEO of Nokia in 1992.

In 1981, by Kairamo's leading, Nokia created NMT


mobile phone standard, which became very popular
in Northern Europe and Russia. In 1987 Nokia
launched its first NMT phone, Mobira Cityman.

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The next step was to create GSM networks. In 1989


Nokia delivered the first GSM network to Finnish
company Radiolinja. In 1991 the first GSM call was
made by Finland's president. In 1992 Nokia
introduced the predecessor of all its current GSM
phones: Nokia 1011.

So, mobile phones became the main Nokia's


business. And as we have mentioned, Jorma Ollila
became the president and CEO of Nokia

We don't think that it is necessary to talk a lot about


Nokia phones: they are the most popular phones in
almost all countries. Only in the US Nokia takes the
second place, after Motorola. But this isn't a problem,
because today Nokia takes about 38% of global
mobile phone market.

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Nokia doesn't make only mobile phones: all its


handsets are equipped with a range of accessories.
Nokia was the first that offered such design element
as exchangeable covers: only then other makers
added this feature to their handsets. There also are a
lot of other innovations from this company, for
example, one of the latest is the 5140, world's first
GSM phone with Push-To-Talk capability.

So Nokia is the true leader of today's mobile


communications and its market share continues to
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rise. We can't forecast that this rise won't stop in the


future, but now it looks that Nokia should gain an
even bigger market share. But, unfortunately,
nobody knows whether this will happen or not.

Focusing on
Telecommunications

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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.

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It has been rumored that a group of businessmen


tried to offer Nokia to the Swedish telecom company
Ericsson during the recession (1990´s)!

Today, Nokia is a world leader in digital technologies,


including mobile phones, telecommunications
networks, wireless data solutions and multimedia
terminals

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Materials Extraction
A cell phone is made up of many materials. In
general, the handset consists of 40 percent metals,
40 percent plastics, and 20 percent ceramics and
trace materials. The circuit board (also called a
printed wiring board), located in the handset, is the
“brain” of the cell phone because it controls all of its
functions. Circuit boards are made from mined, raw
materials including copper, gold, lead, nickel, zinc,
beryllium, tantalum, coltan, and other metals. The
manufacturing of these boards requires crude oil for
plastic, and sand and limestone for fiberglass. Many
of these materials are known as “persistent toxins”
and can stay in the environment for longperiods of
time, even after disposal. The liquid crystal
display (LCD) is alow power, flat-panel display on
the front of your phone that shows information and
images. It becomes opaque (hard to see through)
when electric current passes through it. The contrast
between the opaque and transparent (see-through)
areas forms visible characters. Various liquid
crystalline substances, either naturally occurring
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(such as mercury, a potentially dangerous


substance) or human-made, are used to make LCDs.
LCDs also require the use of glass or plastic. The
rechargeable battery’s used to power the phone.—
Cell phones can use several types of batteries:
nickel-metal hydride (Ni-MH), lithiumion (Li-Ion),
nickel-cadmium (Ni-Cd), or lead acid.Ni-MH and Ni-Cd
batteries contain nickel, cobalt, zinc, cadmium, and
copper. Li-Ion bat-teries use lithium metallic oxide
and carbon-based materials, all mined from the
earth.Materials ProcessingMost raw materials must
be processed beforemanufacturers can use them to
make products. For example, in cell phones:—Crude
oil is combined with natural gas andchemicals in a
processing plant to make plastic; Copper is mined,
ground, heated, and treatedwith chemicals and
electricity to isolate thepure metal used to make
circuit boards andbatteries. The resulting copper
pieces areshipped to a manufacturer where they
areformed into wires and
sheets.ManufacturingPlastics and fiberglass are used
to make the basic shape of the circuit board, which
isthen coated with gold plating. The board is also
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composed of several electronic components,


connected with circuits and wires (primarily made of
copper) that are soldered to the board and secured
with protective glues and coatings. LCDs are
manufactured bysandwiching liquid crystal between
layers of glass or plastic. Batteries consist of two
separate parts, called electrodes, made from two
different metals. A liquid substance, called
electrolytes, touches each electrode. When an
outside source of electricity such as an outlet is
applied, chemical reactions between the electrodes
and the electrolytes cause an electric current to flow,
giving batteries their “juice” or power. Packaging
&Transportation Cell phone parts and the finished
products need packaging and transportation to get
from one place to another. Transportation by plane,
truck, or rail all require the use of fossil fuels for
energy, which can contribute to global climate
change. While packaging protects products from
dam-age, identifies contents, and provides
information, excessive or decorative packaging can
be wasteful. Packaging consumes valuable natural
resources, such as paper (from trees), plastic (from
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crude oil in the earth), aluminum (from ore), or other


materials, all of which use energy to produce and can
result in waste. Some packaging, how-ever, can be
made from recycled materials. Useful Life Unlike
other countries, cell phone companies in the United
States sell their own phones, which are usually not
interchangeable from company to company. Even
though regulations now allow consumers to transfer
their phone number to a new phone company, most
companies have unique technologies in theirphones
that only work in their own networks. This means
that switching cell phone companies can mean
having to purchase a new phone. One way to extend
the useful life of your phone and prevent waste is to
use the same company for continuing phone service.
Always comparison-shop to be sure you get the
service and phone that’s right for you. You can also
extend the life of your phone betaking care of it
protecting it from damage by storing it in a case,
avoiding dropping it, and keeping it out of extreme
heat and cold and away from water and other liquids.
End-of-Life Donating or recycling cell phones when
you no longer need or want them extends their
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useful lives, and prevents them from ending up in


the trash where they can potentially cause environ-
mental problems. Reuse Many organizations—
including recyclers, chair-ties, and electronics
manufacturers—accept working cell phones and offer
them to schools, community organizations, and
individuals in need. Reuse gives people, who could
not otherwise afford them, free or reduced cost
access to new phones and their accessories. Plus, it
extends the useful lifetime of a phone. Recycle
Electronics recyclers are springing up every-where!
Today, many stores, manufacturers, and recycling
centers accept cell phones for recycling. While some
electronics recyclers only accept large shipments,
communities, schools, or groups can work together
to collect used cell phones for shipment to
electronics recyclers. Some rechargeable batteries
can also be recycled, as several retail stores and
some communities have started collecting them.
When rechargeable batteries are recycled, the
recovered materials can be used to make new
batteries and stainless steel products. Check the
“Resources” section of this posterior a list of
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organizations that will accept your phone and


accessories for reuse or recycling. You can also use
the Internet or phone book to search for local
contacts that recycle and refurbish cell phones.
Disposal By 2005, the rate at which cell phones are
discarded is predicted to exceed 125 million phones
each year, resulting in more than65,000 tons of
waste! Cell phones that are thrown in the trash end
up in landfills (buried in the ground) or incinerators
(burned). Because cell phones contain metals,
plastics, chemicals, and other potentially hazardous
sub-stances, you should always recycle, donate, or
trade in your old cell phone. It’s free and easy. Don’t
throw it away! Phones that are throwaway waste
energy and result in the loss of valuable resources.
Crank Up the Volume A major cell phone
manufacturer recently developed a way to recharge
cell phone batteries using “muscle power.” This
hand-powered device provides20 minutes of talk
time after just three minutes of squeezing a hand-
held generator! Other new technologies, such as
hydrogen fuel cells and zinc air and solar-powered
batteries, are under development and might
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ultimately replace current battery technology. These


new alternatives will conserve natural resources and
reduce waste.

Life Cycle Analysis


Manufacturing a product can be very complex. Raw
materials come from many different sources, and
obtaining each one of those materials involves a
different series of inputs, outputs and processes,
each of which has impacts on the environment. To
identify the total environmental impact of a product
it is necessary to do a life cycle analysis.

To examine how much a cell phone impacts the


environment, it is necessary to account for all the
inputs and outputs throughout the life cycle of the
phone, from its birth, including design, raw material
extraction, material production, part production, and
assembly, through its use, and its final disposal.

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In order to trace what goes into making a cell phone,


here are the components of a typical phone:

The cell phone is composed of the eight following


components:

1. Case: the plastic housing that contains all the


other components
2. Display: usually a LCD (liquid crystal display)
screen where all the information appears
3. Printed Wiring Board: The green boards, including
all the chips and other electronic components
mounted on them, which also found in computers
and most other electronic devices.
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4. Keypad, usually plastic


5. Microphone and Speaker
6. Antenna
7. Battery
8. Adapter (not pictured here)

This is the first stage of a life cycle analysis, which is


called an "inventory analysis." In an inventory
analysis, the goal is to examine all the inputs and
outputs in a product's life cycle, beginning with what
product is composed of, where those materials came
from, where they go, and the inputs and outputs
related to those component materials during their
lifetime. It is also necessary to include the inputs and
outputs during the product's use, such as the
electricity used to charge the battery. The purpose of
the inventory analysis is to quantify what comes in
and what goes out, including the energy and material
associated with materials extraction, product
manufacture and assembly, distribution, use and
disposal and the environmental emissions that result.

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From Graedel and Alleby p. 109

The next stage of a life cycle analysis is the impact


analysis, in which the environmental impacts
identified in the previous stage are enumerated, such
as the environmental impacts of generating energy
for the processes and the hazardous wastes emitted
in the manufacturing process. Once the
environmental impacts of all the inputs and outputs
of a product's lifecycle are analyzed, the life cycle
analysis generates a number that represents how
much the environment is affected.

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calculated, the next step is to conduct an


improvement analysis to see how impact of the
product on the environment. For example,
conservation of energy or water in the manufacturing
process will reduce the environmental impacts of
that process. Substituting a less hazardous chemical
for a more toxic one would also reduce the impact.
The change is then made in the inventory analysis to
recalculate its total environmental impact. This
process is also called design for environment, or
green design.

Cell Phone Inventory Analysis

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Circled in yellow above are all the computer chips in


the cell phone that require significant processing in
their manufacture, about 18 chips. The inputs and
outputs for manufacturing these chips are:

Input Output
70.5 X 5, or 352.5 352.5 pounds of water
pounds of water (200 -
400 pounds are used

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in an average 5
minute shower
Varies according to
3.5 X 5, or 17.5
how energy is
pounds of energy
generated.
0.8 pounds of
0.16 X 5, or 0.8 chemicals, usually in
pounds of chemicals water solution,
possibly treated.

There are additional inputs and outputs associated


with the manufacturing of each of the other
components of the cell phone, including its plastic
case, antenna, its battery, and the energy used
during its lifetime to recharge the battery, and there
are environmental impacts associated with disposal
of cell phones.

Consumers use cell phones for an average of 18


months before dispose of them, a much shorter
period than the lifecycle of older phones. Between
0.8 and 4 percent of the municipal waste stream in
Europe and the US is comprised of consumer
electronics. 0.027 percent likely will be from cell

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phones in 2005, and this is expected to grow.


Consumer electronics are responsible for 40 percent
of the lead in this stream. Seventy percent of
obsolete cell phones are stockpiled in closets and
shelves instead of thrown away.

Computer chips, for example, have a high


environmental impact relative to their weight. For
every gram of a microchip, 630 grams of fossil fuels
are used, whereas for every gram of an automobile,
only 2 grams of fossil fuels are used. This is due to
the fact that making very pure, organized and hence
low entropy structures from high entropy materials
require large energy inputs. Automobiles, while made
with heavy materials, do not require the level of
purity and sophistication of materials as a microchip.
The energy used in producing nine or ten computers
is enough to produce an automobile. Given the
ubiquity and short lifetimes of cell phones, it is likely
that they do a significant impact on the environment

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Batteries used in cell phones

Nokia Cell Phone Batteries


Nokia 1260 (compatible models: 1260, 1261, 1221)
OEM Extended Battery for Nokia 1260; 850 mAh, Lithium-ion
(BLC-2)
Extended Battery for Nokia 1260; 1200 mAh, Lithium-ion
OEM Extended Battery for Nokia 1260; 900 mAh, NiMH (BMC-3)
Nokia 2260 (compatible models: 2260)

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Extended Battery for Nokia 2260; 1200 mAh, Lithium-ion


OEM Extended Battery for Nokia 2260; 900 mAh, NiMH (BMC-3)
OEM Extended Battery for Nokia 2260; 850 mAh, Lithium-ion
(BLC-2)
Nokia 2270, 2275, 2285 (compatible models: 2270, 2275, 2285)
OEM Standard Battery for Nokia 2270, 2275 and 2285; 850
mAh, Lithium-ion (BL-5C)
Nokia 3100 (compatible models: 3100, 3120)
OEM Standard Battery for Nokia 3100; 850 mAh, Lithium-ion
(BL-5C)
Nokia 3285 (compatible models: 3285)
Super Extra Battery for Nokia 3285; 1800 mAh, Lithium-ion,
Vibrational
Nokia 3200 (compatible models: 3200, 3205, PM3205)
OEM Standard Battery for Nokia 3200; 780 mAh, Lithium-ion
(BLD-3)
Nokia 3360 (compatible models: 3360, 3361)
Extended Battery for Nokia 3360; 1200 mAh, Lithium-ion
OEM Extended Battery for Nokia 3360; 850 mAh, Lithium-ion
(BLC-2)
OEM Extended Battery for Nokia 3360; 900 mAh, NiMH (BMC-3)
Nokia 3390 (compatible models: 3390, 3395)
OEM Extended Battery for Nokia 3390/3395; 850 mAh, Lithium-
ion (BLC-2)
Extended Battery for Nokia 3390/3395; 1200 mAh, Lithium-ion
OEM Extended Battery for Nokia 3390/3395; 900 mAh, NiMH
(BMC-3)
Nokia Music Phone (compatible models: 3300)
OEM Standard Battery for Nokia Music Phone 3300; 780 mAh,
Lithium-ion (BLD-3)
Nokia 3560 (compatible models: 3560, 3520)
OEM Extended Battery for Nokia 3560; 850 mAh, Lithium-ion
(BLC-2)
Nokia 3570, 3585 (compatible models: 3570, 3585, 3585i)
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OEM Extended Battery for Nokia 3570 and 3585; 850 mAh,
Lithium-ion (BLC-2)
Nokia 3586, 3588, 3589 (compatible models: 3586i, 3588i, 3589i)
OEM Extended Battery for Nokia 3586i, 3588i and 3589i; 850
mAh, Lithium-ion (BLC-2)
Nokia 3590 (compatible models: 3590)
OEM Extended Battery for Nokia 3590; 850 mAh, Lithium-ion
(BLC-2)
Nokia 3595 (compatible models: 3595, 3595IM)
OEM Extended Battery for Nokia 3595; 850 mAh, Lithium-ion
(BLC-2)
Nokia 3600 Series (compatible models: 3660, 3600, 3620, 3650)
OEM Standard Battery for Nokia 3600 Series; 850 mAh, Lithium-
ion (BL-5C)
Nokia 5100 Series (compatible models: 5160, 5170, 5120, 5125,
5165, 5170i, 5180, 5185i, 5190, 5185, 5120i)
Super Extra Battery for Nokia 5100/6100 series; 1800 mAh,
Lithium-ion, Vibrational
Nokia 6010 (compatible models: 6010)
OEM Extended Battery for Nokia 6010; 850 mAh, Lithium-ion
(BLC-2)
Extended Battery for Nokia 6010; 1200 mAh, Lithium-ion
OEM Extended Battery for Nokia 6010; 900 mAh, NiMH (BMC-3)
Nokia 6016i, 6015i (compatible models: 6015i, 6015, 6016i, 6019i)
OEM Standard Battery for Nokia 6016i, 6015i, 6019i ; 1070 mAh,
Lithium-ion (BL-6C)
Nokia 6100 Series (compatible models: 6120, 6120i, 6160m, 6160i,
6161, 6161i, 6162m, 6162, 6162i, 6185, 6190, 6130, 6180, 6150,
6110, 6160)
Super Extra Battery for Nokia 5100/6100 series; 1800 mAh,
Lithium-ion, Vibrational
Nokia 6200 (compatible models: 6220, 6225, PM6225, 6200,
6200IM)
OEM Standard Battery for Nokia 6200; 780 mAh, Lithium-ion
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(BLD-3)
Nokia 6300 Series (compatible models: 6360, 6370, 6340, 6340i,
6385)
OEM Standard Battery for Nokia 6300 series; 750 mAh, Lithium-
ion (BLB-2)
OEM Extended Battery for Nokia 6300 Series; 900 mAh, Lithium-
ion (BLB-3)
Nokia 6310 (compatible models: 6310i)
Super Extra Battery for Nokia 6310; 1800 mAh, Lithium-ion,
Vibrational
Nokia 6590 (compatible models: 6590, 6590i)
OEM Standard Battery for Nokia 6590; 750 mAh, Lithium-ion
(BLB-2)
Nokia 6560, 6610 (compatible models: 6560, 6610)
OEM Standard Battery for Nokia 6560/6610; 780 mAh, Lithium-
ion (BLD-3)
Nokia 6620 (compatible models: 6620, 6600)
OEM Standard Battery for Nokia 6620; 850 mAh, Lithium-ion
(BL-5C)
Nokia 6800 (compatible models: 6800)
OEM Extended Battery for Nokia 6800; 850 mAh, Lithium-ion
(BLC-2)
Nokia 6820 (compatible models: 6820)
OEM Standard Battery for Nokia 6820; 850 mAh, Lithium-ion
(BL-5C)
Nokia 7100 Series (compatible models: 7110, 7160, 7190)
Super Extra Battery for Nokia 5100/6100/7100 Series; 1800
mAh, Lithium-ion, Vibrational
Nokia 7210 (compatible models: 7210, 7250, 7250i)
OEM Standard Battery for Nokia 7210, 7250; 780 mAh, Lithium-
ion (BLD-3)
Nokia 8260 (compatible models: 8260)
OEM Standard Battery for Nokia 8200 series; 750 mAh, Lithium-
ion (BLB-2)
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OEM Extended Battery for Nokia 8260; 900 mAh, Lithium-ion


(BLB-3)
Nokia 8265 (compatible models: 8265, 8265i)
OEM Standard Battery for Nokia 8265; 750 mAh, Lithium-ion
(BLB-2)
OEM Extended Battery for Nokia 8265; 900 mAh, Lithium-ion
(BLB-3)
Nokia 8290 (compatible models: 8210, 8890, 8290, 8270)
OEM Standard Battery for Nokia 8200 series; 750 mAh, Lithium-
ion (BLB-2)
Nokia 8390 (compatible models: 8390)
OEM Standard Battery for Nokia 8390; 750 mAh, Lithium-ion
(BLB-2)
Nokia 918 (compatible models: 918, 918plus, 918P)
Extended Battery for Nokia 918; 1200 mAh, NiMH

Batteries used in Nokia Cell


Phones

NiMH Batteries
Nickel Metal Hydride cell phone battery products are
less affected by "memory effect." However, long
storage periods will result in a temporary discharge
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of power. Most manufacturers recommend


"conditioning" at least once per month.

Li-Ion Batteries
Lithium Ion cellular phone batteries deliver more
energy per unit (known as "energy density") than
Nickel Metal Hydride (NiMH) or Nickel Cadmium
(NiCD). In other words, used on the same phone,
Lithium could deliver substantially more talk/standby
time than NiMH or NiCD. In addition, Lithium
batteries are generally lighter than NiMH or NiCD
batteries of the same capacity.

2004-year of records
 Record breaking year for the mobile device
industry.
Global mobile subscribers grew to
1.7 billion.

Nokia
Connecting People…. - 40 -
Nokia cell phones

Higher than ever volumes


estimated: 643 million units.
Boom in the growth markets.
Strong upgrade market (camera,
color screen).

 Nokia responds rapidly to shifts in the mobile device


industry.
• Nokia volumes to reach record
207.7 million units
• Renewed product portfolio: 36
products announced
• Growth in the infrastructure
business after a challenging period

Nokia- key figures 2004


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Connecting People…. - 41 -
Nokia cell phones

2004 2003 Change


%
Net sales (EUR millions 29267 29456 -1*
Operating profit (EUR million) 4330 5011 -14

Operating margin,% 14.8 17 -

Earnings Per share, diluted, 0.70 0.75 -7


EUR
Net debt to equity (gearing), -78 -71 -
%
R & D (EUR million) 3733 3760 -1

Personnel (year-ended) 55505 51359 8

Total Net sales EUR 29267


millions in 2004

Nokia
Connecting People…. - 42 -
Nokia cell phones

Net sales by Nokia


31500

31000

30500

30000

29500

29000

28500

28000
Euro mn 2000 2001 2002 2003 2004
Years
Sales- Euro mn

Net sales by a country in


2004 (EUR millions)

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Connecting People…. - 43 -
Nokia cell phones

Countries Sales

USA 3416

China 2660

UK 2261

Germany 1730

India 1364

Brazil 1091
Russia 938

UAE 909

Italy 884

Spain 768

Strong Nokia Team


 55505 Employees at the end of 2004 (51359 end
of (2003)
 Net increase of4146 people
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Connecting People…. - 44 -
Nokia cell phones

75% in production
25% in R&D
20% In Finland

 Total Bonuses and incentives paid for 2004: EUR 456


million
• Connecting people bonus paid to
nokia employees total EUR 67 million
• Personnel, team and project
bonuses paid to over 45000 employees
 Continued Investments in personnel development
Total training cost over EUR 90
million in 2004
Incl. EUR 50 million related to nokia
learning centers

Nokia Cell Phones launched


in 2004

Nokia
Connecting People…. - 45 -
Nokia cell phones

9500 7260 6670

6260 6015i 2651

2650 7710 3125

6255 6651 3220

1108 2112 7280

6630 6620 6012

7270

Nokia top 5 Priorities

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Connecting People…. - 46 -
Nokia cell phones

 Great products
 Improve customer satisfaction
 Improve R&D effectiveness
 Better align Demand supply Network
 Drive Nokia End to End advantage

Conclusion
During the preparation of our project, we found the
innumerable factors favoring Nokia for being a
leading player in the mobile handset market. During
last few years, the cellular communications have

Nokia
Connecting People…. - 47 -
Nokia cell phones

changed; mobile handset has simultaneously evolved


from just being a communication device to an
entertainment device. In near future, internet
surfing, music download and playing, camera and
games are going to be the major thrust areas for
revenues. In such a competitive and developing
sector, Nokia example aptly shows the importance of
product innovation as one of its major factors behind
overall success. Thus, Nokia is definitely sure to shift
from “Connecting People” to “Entertaining People”.

Bibliography

Nokia
Connecting People…. - 48 -
Nokia cell phones

www.nokia.com

www.google.com

www.nokiainfo.net

Nokia
Connecting People…. - 49 -

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