Daily Management Review

Nokia wants to reconquer the market


12/01/2016


Return of Nokia smartphones brand is expected in 2017. The first announcement could take place at MWC 2017exhibition, which will be held in Barcelona from 27 February to 2 March. The company confirmed that strategic agreement with company HMD Global on its brand and intellectual property has entered into force. The agreement was originally announced on May 18, 2016.



Kārlis Dambrāns
Kārlis Dambrāns
HMD Global is confident that the brand will be a success and will build communication with millions of users around the world. Nokia push-button phones will continue to be sold along with new models of smartphones and tablets, which will be presented later.

Recall that Nokia is prohibited to produce smartphones before the IV quarter of 2016. This is a clause of a deal, which the company signed with Microsoft in 2013 when selling its mobile business. The agreement states that Nokia is deprived of the right to place its brand on smartphones before the end of 2016, and on mobile phones - up to 2024.

In May, Nokia announced a strategic licensing agreement with Finnish HMD Global with respect to intellectual property and the brand. HMD Global will be able to create a new generation of phones and tablets under the brand name Nokia over the next ten years. At the same time, Microsoft announced sale of assets associated with companies – producers of entry-level phones FIH Mobile and HMD Global.

HMD will take up development of Android-based smartphones, with Chinese Foxconn as a manufacturer. The company is headed by one of Nokia’s former top managers Arto Nummela.

"We will be faithful to Nokia brand, which products are known for their reliability, quality and ease of use. All of this will be present in the new product line, coupled with a great design" - Nummela said.

It is expected that at least two Nokia Android-based smartphones will be presented next year. One of them will be equipped with 5.5-inch display Full HD, 64-bit Snapdragon 430 processor with eight cores and 3 GB of RAM and 32 GB of internal memory. This model will run on the latest version of Android - 7,0 Nougat.

Just as Nokia plans to re-conquer the smartphone market, HMD is trying to regain its position as one of the leading manufacturers of mobile technology. It plans to invest about $ 500 million in "smart" electronics for three years.

Successful return of the Finnish brand can become a role model to other mobile vendors, such as BlackBerry Ltd. and Siemens AG. They, just like their Finnish "colleague", fell victim to fierce competition from Apple and other manufacturers of Android-based mobile phones.

In November, Nokia released its financial report for the third quarter of 2016 fiscal year.

The company's revenue for the year has almost doubled to € 5.89 billion. Thus, for example, division IP Networks and Applications demonstrated revenue growth of 331%.

Operating profit amounted to just 55 million euros, a decrease of 83% in annual terms. Net loss for the quarter was equal to 133 million euros against 188 million euros in net profit a year earlier. The company attributed the result to costs for purchase of Alcatel-Lucent and reduced demand for telecommunications equipment. 

source: valuewalk.com






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