Nokia is coming back to phones and tablets
In the time of advancement and succession in the mobile industry, a new beginning has taken place for a matured company. Nokia was one of the most loved brands when it came to mobile phones. The devices made by them, back in the days were the real deal. This was until Microsoft took over the wheel. Yesterday, Nokia’s mobile business with Microsoft came to an end . With that being said, The company has planned to come back into the smartphone industry with a new range of smartphones and tablets.
Nokia signed a strategic brand and intellectual property licensing agreement enabling HMD global to create a new generation of mobile phones and tablets. HMD global have their roots in Finland. Also, The company is led by Arto Nummela, a Nokia veteran who moved to Microsoft when the latter company took over the former’s mobile business. The new company has agreed to a conditional deal with Microsoft, to acquire the rights to use the Nokia name on feature phones along with some related design rights. Nummela will be installed as CEO once that transaction is completed, which is expected to happen by the end of June.Arto Nummela, CEO-designate of HMD, said:
Arto Nummela, CEO-designate of HMD, said:
“We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers. Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the Nokia brand and our extensive experience in sales and marketing. We will work with world class providers in manufacturing and distribution to move quickly and deliver what customers want.”
Will Nokia Be Able To Make A Successful Comeback?
A new announcement was made by FIH Mobile Limited (FIH). Subsidiary of Hon Hai Precision Industries, the remainder of Microsoft’s feature phone business assets, including manufacturing, sales and distribution, would be acquired by FIH. HMD.Also, the company has signed an agreement with FIH to establish a collaboration framework to support the building of a global business for new generation of mobile phones and tablets. This agreement will give HMD full operational control of sales, marketing and distribution of the upcoming mobile phones and tablets, with exclusive access to the pre-eminent global sales and distribution network to be acquired by Microsoft by FIH, access to FIH’s world-leading device manufacturing, supply chain and engineering capabilities, and to its growing suite of proprietary mobile technologies and components.
The company will provide HMD with branding rights and cellular standard essential patent licenses in return for royalty payments, but will not be making a financial investment or holding equity in HMD. The company will take a seat on the Board of Directors of HMD and set mandatory brand requirements and performance related provisions to ensure that all products exemplify consumer expectations of devices, including quality, design and consumer focused innovation.
Ramzi Haidamus, president of Nokia Technologies, said:
“Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name. Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the original brand in global markets. Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”
The thought of Nokia coming back to smartphone industry is thrilling. The competiton is increasing day by day with new companies emerging so frequently.
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