Nokia Making An Iconic Return To Smartphones And Tablets – What Will We See Next
Microsoft, the software giant that acquired Nokia has announced to sell its feature-phone business to FIH Mobile, which happens to be a subsidiary of Taiwan-based electronic assembling giant Foxconn. This means that Nokia is officially back in business.
Microsoft Has Sold Its Feature-Phone Business For $350 Million – What Is The Next Nokia Phone That We Can Expect To See
After the deal has been successfully completed, approximately 4,500 employees will be given the opportunity to FIH Mobile, or HMD Global. Ramzi Haidamus, President of Nokia Technologies had this to say regarding the latest announcement:
“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 Nokia 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.”
In addition to making smartphones and tablets now, Nokia Technologies has also dug into virtual reality and digital health-tracking after acquiring Withings $192 million. Now, Nokia is not going to be manufacturing phones and tablets, but its primary aim would be to sell phones through a brand-licensing agreement. The reason for this is because it no longer has many of the manufacturing and distribution arsenal needed to make and ship off phones. There is where the magic of HMD Global is going to come into play.
HMD intends on investing around $500 million over the next three years to provide support to the marketing of Nokia-branded devices. CEO of HMD, Arto Nummela had this to say concerning the new partnership created between Nokia and the firm:
“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.”
If you take a stroll down memory lane, Microsoft cut thousands of jobs and wrote down roughly $7.6 billion on the Nokia acquisition during 2015. Until Microsoft starts to put a ton of focus on Windows 10 Mobile, the software giant will never be able to make it big in the smartphone industry, but we are glad that Nokia will finally be making its iconic return to the game once more.
Stay in the loop
GET A DAILY DIGEST OF LATEST TECHNOLOGY NEWS
Straight to your inbox
Subscribe to our newsletter