Daily Management Review

Nokia Looking To Re-enter Smart Phone Segment By Brand Licensing Late Next Year


07/14/2015




Nokia Looking To Re-enter Smart Phone Segment By Brand Licensing Late Next Year
After having sold off its slugging mobile business to Microsoft for around $7.5 billion, the Finnish mobile company is looking to re-enter the mobile market once again through the brand licensing route. The company is reported to be looking out for a suitable mobile device manufacturer to restart its mobile business be late next year.
For this purpose the once mobile device giant is looking out for a partner that can manufacture world calls mobile devices as well as take care of the sales, marketing, and customer support for the product. Nokia would lend its brand name to the manufacturer while the company would be able to sell mobile devices with the established brand name of Nokia.
Accepting the ever growing and yet complex mobile business, Robert Morlino, spokesman for Nokia Technologies is of the view that the company could only take a call after it manages to  locate a partner that can assure Nokia of product make and performance .
In 2014, Nokia had an initial stint into the re-entry process when Nokia N1 Android tablet was launched through the brand licensing route. Nokia entered into an agreement with Foxconn where the established Chinese OEM was responsible for the manufacture, distribution, and sales of the tablet.
Clarifying the company strategy, Robert Morlino said that Nokia would provide guidance to the partner for the designing and technology aspects that can help create product differentiation as had happened with the Nokia N1 Android tablet.
“That's the only way the bar would be met for a mobile device we'd be proud to have bear the Nokia brand and that people will love to buy,” Morlino said.
At present, Nokia is active in mobile network infrastructure, mapping services and technology development and licensing business after selling out its mobile device business. Nokia is not ready to get into the gadget production business at present not is it willing to expend its existing resources for other allied business processes. . This is the reason Nokia is looking out for a partner that can to do all "heavy lifting" of the mobile device business. The company should also be ready to work closely with Nokia which essentially means that Nokia would be supervising several of the business processes.
The time line of the re-entry is also very clear. Nokia pointed out that re-entry into the mobile device market would not be possible before Q4 of 2016 when the restrictions on Nokia from the Microsoft deal would come to an end. As a part of the deal with Microsoft, Nokia was barred from using its brand name on smart phones till the fourth quarter of 2016 and no feature phones for ten years.  
However Nokia is very clear about the product that it would lend its brand name to. “It has to be one that would have to look and feel just like Nokia built it” said a company statement. Nokia is eyeing to utilize its know-how of mobile device manufacturing and its massive patent portfolio apart from its well established brand name.
 (Source: http://gadgets.ndtv.com) 






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