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The Rise and Fall of Nokia (2018)
(dark atmospheric music)
- [Man] The one thing you need to understand is that working in Nokia at that time was unlike anything I've experienced anywhere. - [Man] I feel super privileged to have been welcomed and to have been included and to have been given all these opportunities to do stuff at the scale that Nokia operated at. - For the past few years, it's almost been, people have talked in a way that they're almost embarrassed to have been at Nokia or people have joy at, "ah, you Nokia people, look what happened to you." - [Man] For Nokia's glory, I must say it still kinda looks, (chuckles) looks like a phone. (moody electronic music) - The underlying reasons here at Mobira is to operate in the field of radio telephony in such a way that the short and long-term interests of our customers and other interested groups are fulfilled in best possible manner. - [Reporter] The China is a market area of vast potential, and here, Nokia has made remarkable inroads, even in the face of extremely fierce competition. - Especially I think we are able to offer far-east telecommunication equipment, we are also able to offer far-east turn key engineering products like this cable machinery line that we have sold here to China. (dark atmospheric music) - [Whispering Woman] The future is now. Nokia. Technophone. - And I found my father and I said, "Where's Finland?" And he said, "I think it's near Luxembourg." Which shows how much my father knew. So anyway, so I finish work, five o'clock. Just like Olli is, get on a plane, fly to Helsinki, get a bus to Salo. Why are they all puttin' hats and coats and scarfs, and I'm fine, I got outside, I thought, oh, now I know. And there was a bank, on the top it had a clock, and the temperature was -29. (moody electronic music) (tense orchestral music) (phone rings) - [Woman] Scotty, I've just gone into labor! What should I do? - Push! - [Man] Nokia, connecting people. (moody atmospheric music) (upbeat string music) - [Man] Nokia, and you never miss an opportunity. - Hello? (dramatic orchestral music) (peaceful string music) (phone rings and vibrates) - And when we actually heard, during the winter '98, that there is a possibility to download a ringtone over the air to this mobile phone, and change the ringtone that you had, it was really exciting. So we started work on that and by December that year, we were ready to launch the service, and it was really amazing because when we started the service, during the first day, without any advertising, we had more downloads than we were predicting for the whole month. And after one week, we had already, the same amount of downloads that we were forecasting for the whole year. - It's difficult. No offense. So I lived in Oulu for most of last 26, 27 years, though I like in Helsinki now, and I think many people don't realize the significance that Oulu played in some of the success that Nokia had, I mean, you know, everyone takes credit, everyone thinks that they were the ones who made it. The state technical laboratory, so VTT, was very strong on software development at the time, and we did a lot of work with VTT in some quite fundamental things that were used in billions of phones. (water hisses) - Before I came to Finland, we were given this kind of a cultural training and that was given by a Finnish guy and the first thing he told was, "Finnish people are very "comfortable getting naked in front of other people." And me and my friends were like, "What did he say, naked?" And then we learned about sauna, and yeah, the sauna experience was, in the beginning, a bit shocking to me, but then I also kind of liked sauna, also take sauna quite often now. (peaceful atmospheric music) - [Reporter] Mr. Gates, Mr. Gates. Do Microsoft have any plan to buy Nokia, or some other Finnish companies? (ominous chord) (smooth jazz music) - You were in the sexiest, you were in the most science-fiction technically forward-looking, everybody wanted a phone, you were doing it, you know? You were the dream son-in-law, the dream daughter-in-law. "Ah, your husband works for Nokia, wife works for Nokia." People talked like that, it was weird. - So, one of the focus areas for me has really been to build the Nokia brand such that we're now virtually number one in terms of brand popularity, and we're certainly number one in terms of the number of handsets we sell in Asia. - Now we have had a very successful Nokia Superbowl in the beginning of January that has really helped our brand building and name recognition in the United States. - [Reporter] In the United States, Nokia is the market leader. - Went to a place called Chongqing, which is now probably the biggest city in China. It was big then, but it's even bigger now. It's right on the Yangtze River. And the driver said, "Do you want to go to the Nokia factory?" And I said, "There's no factory here. "There's an office here, that's it." And he said, "No, no, no, it's a factory." So, "Okay." Massive, big Nokia factory. I thought, oh, this is interesting. So, no one knew and this is not in the bible, it's not on John Talbot's spreadsheet, so this is bad. It's huge, it's an absolutely massive factory, and sure enough, there's a big Nokia sign. I thought, we're in the right place. So, I goes in, there's a great big, you know, manufacturing on this big shiny floor, when the machines are all put on, anti-static or something, there was a big floor and it was like an ice rink. There was nothing on it. I went to walk and all the cleaners came, the Chinese. "Don't walk on that." "Okay, sorry." So, big Finnish guy comes out, I said, "Hi, how are you?" He said, "Very good." "We haven't seen anyone from Nokia here for years." I said, "Really, how long have you been here?" He said, "About two and a half years." I said, "Do you feel abandoned?" He said, "Yeah." I said, "Where do you get your orders from?" "Nowhere." And he was just there. It turned out that a salesman of Nokia Networks, because the amount of money in networks was so big, he had agreed to build a $20-million factory so they could employ local people. He even paid $5-million to finish it early, so it could be doing nothing for longer. But they wanted a factory, so he gave them the factory. And that was it, and it was there. And this went right up to the top. "How come we've got a fucking factory, "and what do we do with it?" (smooth jazz music) (dark atmospheric music) - In certain countries in Africa, they were killing rare gorillas in those areas in order to get tantalum from the mines and then sell the tantalum to electronics industry. The question was how will we know that what kind of materials are used in mobile phones because in electronics, it was very difficult at that time. - Auto-correct this. - I think looking back, that was the time when, when things changed. It went from being a highly technical group to just being a large group of people. And I don't think that that was just an Oulu issue. In fact, I can tell you it wasn't. Myself, I had teams all over the world. California, Texas, Boston, the UK, Denmark, Germany, all over Finland, India, China, Tokyo, I had teams all over the place. And they all grew. Some of them, much quicker than others. - We'd go to work every morning hoping that we'll have some impact and wanting to see that impact and I think in a company that size, it's very hard. - It almost seemed like, instead of competing with people outside of the company, that there was more competition inside the company. Page 37. (sighs) - There was a lot of excitement, but I think there was also that hubris had crept in. So every product we were gonna make was always gonna be massive, never gonna be a problem. No one was ever gonna be able to beat us at that. And, um, other companies were trying, you know? - Tonight, we're gonna honor one of your country's greatest products, the Nokia cellphone, its world-famous ringtone. (phone rings) (audience laughs) Finland, this is for you. - One, two! (audience cheers and applauds) - [Actor] Today, today Apple is going to reinvent the phone. And here it is. (audience applauds) (ominous chord) - [Actor] Well, what we're gonna do is get rid of all these buttons and just make a giant screen. - I remember looking at that and going, oh, oh yeah, that's, yeah, that's how it's supposed to be done. - Apple's made some pretty interesting trade-offs, one of them is battery life and one of them is the durability of the product. Now, 10 years later, we all kind of accept that our phones last for a day and then we charge them, and we have chargers next to the bed, which is the new normal. And we all accept that if we're stupid and we drop our phone then the screen will smash, we know that that will happen. 10 years ago, that was not acceptable. - [Actor] And boy have we patented it. - [Actor] Who wants a stylus? You have to get 'em and put 'em away and you lose 'em. Nobody wants a stylus, so let's not use a stylus. We're gonna use the best pointing device in the world. We're gonna use a pointing device we're all born with. We're born with 10 of them, we're gonna use our fingers. - Yeah, so this is the N9 in its original packaging, and there it is. (black metal music) - [Reporter] This was supposed to be nothing short of a fairytale. At first the company had planned to create more than 10,000 jobs, but right now only 1,600 Romanians are employed and many of these are on very precarious contracts. Management has refused to comment on this. - [Reviewer] So, it's not gonna be the end of the line for this particular style, though at the moment, MeeGo's future isn't looking great. - I can't even remember, I'm assuming it was winter, but I remember driving into the parking lot in Nokia house and you had to go up a couple of ramps and then you drove and you found the space and it was super nice and little green lights to show you where there was spaces and I remember pulling in and shutting off the engine and not wanting to get out of the car. Just, I thought, okay, I'll just sit here for a bit, 'cause I don't wanna go in there and I could see, like, Nokia house is built in a way that it has these three big lumps of building and then there's these glass bridges in between and you can see people walking backwards and forwards and doing their thing. But I didn't wanna go in, like, I think physically just couldn't get out of the car, so just sat there, and looked and it was probably, I don't know, 20, 25 minutes something like that and then I thought, right, okay, I'll pull myself together and go in and so I got out the car and shut the door and locked the car, and I looked around and (chuckles) there was probably like five other people doing the exact same thing. Just sitting in their cars, just sitting there, and I walked slowly to see whether maybe they just arrived, but no, they were doing the exact same thing that I'd been doing. And that was a really scary moment. That was like, this is hurting people. And I think what was keeping them there was just this complete powerlessness, like driftwood, and we could go in there, we could work our arses off for 12 hours and we did, like 12, 16 hours a day, just cranking it out, and it would have no impact, no effect whatsoever. That company was going down, no matter how much me and those five other people worked. - [Reporter] After a rollercoaster decade, Nokia will no longer be making mobile phones. The Finnish company is selling its mobile device unit to Microsoft in an all-cash deal worth 5.44 billion Euros. By abandoning phones, it will refocus on infrastructure and services. - This is win-win for employees, win-win for shareholders, and win-win for customers of both companies. - Conspiracy? It's business. Publicly-traded company. Foreign people will buy your shares. When they have enough, they will make your decisions. It's not a conspiracy. Business. (moody atmospheric music) - All of us, all of the shareholders, we have children in school and we know that the digitalization is coming and there are basically no means, no processes, no tools for teachers and students to actually implement the digitalization and we all have a very long background in device management, so we know this area in and out. - Who knows, maybe one these startup one day become as big as Nokia again for Finland. - If you aim for 99% quality, it's a failure. You have to have 100%. 'Cause if you think if the airlines run at 99%, you're gonna lose two or 3,000 planes every day, and that's not gonna work very well. (peaceful electronic music) |
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