Nokia, the brand which gave mobile phone to every hand and pocket was 2 years ago bought up by Microsoft for $7 billion covering Nokias devices and services, patents, mapping & navigation services. Deal also included transfer of employees.
Nokia was the king of phones. Everyones first phone was Nokia. Nokia taught us everything about phones and gave us revolutionary devices from basic feature phones to fully-fledged multimedia Nokia phones. Nokia gave us Metal frame, Symbian OS with Multitasking, best smartphone cameras, design like slider, flip or simple bar phones. The list is non-ending.
But, Android and iOS were main challengers to Nokia. Nokia could evolve as per public demand and had shortage of investments and stated losing its value and share (at peaks Nokia valued $300 bn). Then, came the Microsoft to change the story who provided Windows OS and later bought up the brand. Did Microsoft slowly killed Nokia ?
Microsoft renamed the Lumia series of smartphones with Microsoft Lumia. Microsoft probably not getting any profit from Nokia feature phone business and decided to sell this unit, now.
Microsofts $350 mn deal with HMD Global & FIH mobile will allow Nokia to do a comeback. FIH Mobile – subsidiary of Taiwanese firm Foxconn, and HMD Global Oy, a Finnish smartphone manufacturer. HMD Global is formed recently by former Nokia employees, having its headquarters in Helsinki, Finland. The deal is expected to sell Microsoft’s feature-phone business, software, services and a smartphone manufacturing facility in Vietnam to the above mentioned two companies. The licence deal will allow them to use Nokia branding on feature phones for coming 10 years. The deal also include 4,500 employees who can join either of two firms of their choice.
HMD has also done a strategic deal with Nokia Technologies allowing them to use Nokia branding on their smartphones and tablets. Nokia Technologies will receive royalty payments from HMD for sales of phones and tablets. Both above deals make HMD Global the sole licence holder of Nokia branding for all kinds of phones and tablets.
Foxconn will help in manufacturing and supplying the phones designed by HMD, under brand Nokia. As Android is the main player in OS market, it will be a wise decision to come back with Android powered smartphones and tablets. Growing markets like India can help Nokia grow as well.
We may see Nokia branded devices in a coming months.
We will keep you updated about further strategies and devices they are going to launch , stick around.
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