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Do you believe that Nokia, which you thought had gone bankrupt, not only survived but is still one of the world's most profitable technology companies, making trillions of dollars in profit every year?
In 2022, Nokia's annual revenue reached 24.9 billion euros. Its net profit of 4.25 billion euros also hit a new high in nearly a decade. Moreover, as early as 2017, it quietly returned to the Fortune Global 500.
In the telecommunications field, it is the world's third-largest telecommunications equipment manufacturer, second only to Huawei and Ericsson. In terms of 5G, its number of patents ranks second in the world and is the strongest competitor of Huawei. Even the Nokia phones that you thought were dead are quietly making a comeback.
Do you remember the era when everyone used Nokia? In fact, even now, you are still under its control. It is like an invisible hand that continues to envelop all of us. Even Apple, which once defeated it, has to pay 100 million euros to Nokia every year.
How did Nokia make a comeback? Please read this article carefully. I would like to call it the most inspiring case of a business comeback in history.
Those born in the 1970s and 1980s are no strangers to the peak period of Nokia's strength. Starting from 1996, it was the world's largest mobile phone seller for 15 consecutive years. The myth of the Nokia 1100 selling 250 million units remains unbroken.
At its craziest, one out of every two phones sold globally was a Nokia. However, when Nokia was at its peak, two things quietly happened across the ocean: Apple developed a mobile operating system called iOS, and an unknown Android system was sold to Google for $40 million.
Nokia never imagined that these two seemingly unimportant "little things" would become a threat to its existence.
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In 2008, the iPhone was released, and Nokia realized that phones were not just for making calls. This dominant mobile phone market leader for 15 years saw its market share drop from 50% to less than 4%, its market value shrank by more than 90%, and it eventually had to sell its mobile phone business to Microsoft for $7.3 billion.
Did you think Nokia was done for after selling its mobile phone business? Little did you know, it had already planned an exit strategy.
While Nokia was selling its mobile phone business, it made a shocking decision. In 2006, Nokia and Siemens established Nokia Siemens Networks. Although it became the fourth-largest telecommunications equipment manufacturer in the world, its performance was poor, losing billions of dollars over six years. Siemens eventually decided to sell it.
When everyone thought that Nokia, plagued by problems, would follow suit and sell it, Nokia, on the brink of bankruptcy, decided to buy it for 1.7 billion euros.
Unexpectedly, this neglected abandoned child later became Nokia's savior. In fact, even after selling its mobile phone business, which contributed 90% of the company's revenue, Nokia's strength was still not to be underestimated.
With 30,000 patents in hand, it could generate at least 500 million euros in revenue annually. However, Nokia did not want to rely solely on its patents.
Instead, it was determined to rebuild Nokia around its telecommunications business as the core.
Coincidentally, the world's third-largest telecommunications service provider, Alcatel-Lucent, was also up for sale. Nokia decided to take a gamble and acquire it.
After some struggles, it finally raised $16.6 billion and successfully acquired Alcatel-Lucent. After taking it over, Nokia's market share in the telecommunications business jumped from 8% to 30%, making it the world's second-largest telecommunications service provider after Huawei.
More importantly, Nokia also acquired the "greatest laboratory on earth" – Bell Labs in the United States. With the acquisition of Motorola's wireless business unit in 2010, Nokia became a super alliance of Motorola, Alcatel-Lucent, Bell Labs, Siemens, and Nokia.
While everyone was mocking it, a new Nokia had already taken shape. Its role had changed from prey to hunter.
It couldn't beat you in mobile phones, but you still need telecommunications technology, right? Okay, let's wait and see. After several years of being quiet, the hunt officially began.
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In 2017, Nokia suddenly re-entered the Fortune 500 with an annual revenue of 185 billion.
Upon seeing this news, many people's first reaction was: Nokia is still alive! They don't know how much global phone manufacturers fear hearing this name.
Because mobile phone technology is inherited from one generation to another, even 5G phones use 2G technology. Global phone manufacturers cannot bypass Nokia's patent "wall."
For example, App Store is a Nokia patent. Mobile phones with cameras are also Nokia patents! Apple, Samsung, and Huawei all have to pay protection fees obediently, or they will be sued.
In 2011, Apple paid Nokia 420 million euros in compensation and had to pay an annual patent fee of 100 million euros.
In 2014, Samsung lost a lawsuit and had to pay Nokia over 200 million euros annually.
In fact, when people thought Nokia was "dead" during those years, it gathered 40,000 engineers worldwide and worked tirelessly to develop 5G technology.
Today, in the new 5G battlefield, Nokia's dominance is second only to Huawei. Especially in these years when Huawei has been suppressed, Nokia can be said to be the biggest winner, picking up a lot of slack.
In addition to telecommunications and patents, Nokia phones are quietly making a comeback.
In 2017, Nokia phones based on the Android system officially returned, manufactured by Foxconn, with Nokia providing patents and technology.
Nearly 60 million feature phones were sold in a year, making it the world's second-largest feature phone manufacturer.
About 8 million smartphones were sold in a year, making it the third-largest manufacturer in the UK.
In 2018, Nokia's phone sales increased by 782%, and its market share reached ninth globally. Perhaps this is the biggest difference between ordinary companies and these great companies.
You may defeat me, but you cannot easily kill me. And those who cannot kill me will eventually make me stronger.
Reference: 诈死的诺基亚，一年躺赚几千亿
