Remember Nokia? The world’s most popular phone producer at one time? Due to the emergence of the recent tech giants, Apple and Samsung, Nokia has almost disappeared from the face of modern innovation. Well, guess hibernation period’s over because the Finnish company just announced last week that they are coming back to the scene with a bang!
The Finnish company who are said to re-enter the mobile phone and tablet market soon has signed a strategic brand and intellectual property licensing agreement with HMD global to manufacture Nokia branded smartphones, tablets, and feature phones over the next decade. In a press release, Nokia stated that the new line of smartphones would feature an Android operation system, a shift from its earlier phones that featured a Window’s Mobile operation software.
Between 1998 and 2011, Nokia was the world’s top mobile phone maker but soon they were overtaken by South Korean rival Samsung after failing to respond to the rapid rise of the Smartphone market. In 2011, Nokia chose to bet on the Windows mobile platform, which eventually led to a major failure. The Finnish company sold its handset unit to Microsoft in 2014 for some $7.2 billion which dropped using the Nokia name on its Lumia smartphones. The conditional deal between Microsoft and Nokia’s new brand licensing partners is expected to close in the second half of 2016.
HMD plans to acquire Nokia branding and designs rights from Microsoft, which will make it the sole licensee of Nokia devices. It plans to invest $500 million over a period of three years in the acquired firm to boost marketing globally. The press release went on to suggest that the brand remained one of the most popular mobile phone choices across many markets around the world.
“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,” HMD CEO-designate Arto Nummela said.