Nokia brand reentering the smartphone market

By: Vamien McKalin
2 minute read

Nokia is a company that used to be on top of the world when it came down to the smartphone business. However, the rise of the Apple iPhone shed light on a company that could not respond, and such, it is now a shadow of its former self.

Nevertheless, the Nokia brand name is still quite powerful, if even just a little bit, and even if Foxconn has bought the feature phone business from Microsoft. With that being the case, the former Finnish giant has decided to allow a Finland-based startup company to use the Nokia brand name to sell smartphones. The company is called HMD Global, and if everything goes according to plan, we’ll be seeing not only smartphones but tablets from this company.

Now, from what we have come to understand, HMD Global will be focusing more on Android than anything else going forward, but we’re sure Windows 10 Mobile will come into play if and when Microsoft manages to grow the operating system’s market share from almost zero to hero.

Here’s what Nokia had to say via the press release:

Nokia 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.  Nokia Technologies will take a seat on the Board of Directors of HMD and set mandatory brand requirements and performance related provisions to ensure that all Nokia-branded products exemplify consumer expectations of Nokia devices, including quality, design and consumer focused innovation.

Here’s what Arto Nummela, CEO of HMD Global and former Nokia executive had to say:

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.”

It is going to be a tough ride because it is well known that Apple, Samsung, and several Chinese companies command the lions hare of the smartphone profits. A company coming from scratch with a beaten up Nokia brand name will definitely have a tough time breaking in and breaking even.


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