Nokia has signed a new deal with HMD global for 10 years and the company will make equipment (smartphones and tablets) for Nokia for the next 10 years. This is the Rise of Phoenix – and a much anticipated come back from the once the most valuable Mobile manufacturing company in the world.
The newly founded company will be based out of Finland the home turf of Nokia. HMD global will be pumping in $500 million into the venture in the course of next three years and will also be part of branding and marketing of Nokia devices.
Microsoft has sold Nokia’s feature phone business in a group deal with FIH ( a subsidiary of Foxconn) and to the HMD Global. The deal is worth $350 million.
Everyone has a legacy of using a Nokia smartphone, and boy O’ boy was they phenomenal back in 2005 with Nokia 6600.
Microsoft acquired the Nokia Mobile Business in 2014 and it is common knowledge that Microsoft re-branded Nokia to Microsoft for all the devices.
What happened & how it happened?
Nokia CEO ended his speech saying this “we didn’t do anything wrong, but somehow, we lost”. teary eyed Steve Balmer at an earlier press conference in 2014 when Nokia was acquired by Microsoft.
Competitors moved too fast and Nokia was caught in the middle of Android and iOS both becoming very prominent. The last nail was the rise of Samsung and other Android manufacturers, that saw the end of it.
Nokia has issued a statement a few months back stating about the intent to get back into the smartphone business.
Robert Morlino, the spokesman for Nokia Technologies, stated that they are looking for a world-class partner to take care of the manufacturing, sales, and distribution of the product and Nokia will provide the brand name to the products. It is however not mentioned how much Nokia will share the know How and help in the new development of smartphones.
What is happening now is that the Nokia Technologies the equipment arm of Nokia is looking forward to venturing back into the Mobile business with the Nokia Band name. Microsoft only acquired the mobile business unit, not the Nokia technologies which is an independent unit and is not controlled by Microsoft.
The Microsoft acquired the Nokia brand (mobile business unit) and killed the Nokia brand by replacing it with Microsoft on all the Lumia smartphones last year.
The acquisition agreement of Nokia Mobile with the Microsoft states that Nokia Technologies can’t use the Nokia brand name and launch new smartphones in the market till next year end. But after that period Nokia is free to launch new smartphones under the brand name “Nokia”.
Nokia also launched an incredible Tablet some months back known as Nokia N1 Tablet, an absolute cracker of the device and at a very affordable tablet. It is based on Android Operating system and does not run on Windows. This tablet was launched by Nokia Technologies with a partner Foxconn(Chinese OEM manufacturer), and nothing to do with Microsoft.
The acquisition agreement between Nokia and Microsoft does not forbid Nokia technologies to launch a tablet using the brand licensing route. Though it is unfortunate that the tablet is not available globally due to production and distribution issues.
Earlier as per agreement with Microsoft Nokia cannot use the brand name Nokia on feature phones for next 10 years. But now it is possible after the stake sale by Microsoft.
Nokia CEO Rajeev Suri also revealed the plans for Nokia to enter the mobile business next year. Nokia once had close to 70% of market share in Indian mobile market before the Android and iOS crusade came, once a giant is now struggling to stay alive. Let’s see and hope for best, how future unwinds for the Finnish technology behemoth.